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FHA Certification

Effective Feb. 1, 2010, the Federal Housing Administration (FHA) imposed requirements for condominium projects (excluding site condominium projects) within the Condominium Project Approval section of the Single Family Housing Policy Handbook. FHA-insured mortgages were no longer available for the purchase or refinance of a condominium unit unless the condominium project, in which the unit is located, had been certified by the FHA.  Then, effective October 15, 2019, the FHA made further changes to the Condominium Project Approval section.  The comprehensive revision to FHA condominium project approval policy included an extension of the certification approval period from two to three years, and introduced a new single-unit approval process to make it easier for individual condominium units to be eligible for FHA-insured financing, if the condominium project is not FHA certified, among other things.  Once the community has obtained initial FHA certification, an application for FHA recertification may be submitted up to six months prior to and after the initial FHA certification expiration date.

Our firm continues to believe there are many good reasons for a condominium association to pursue FHA certification for their community.  FHA certification is crucial for maximizing mortgage financing opportunities for potential condominium purchasers.  Millions of families have an FHA-insured mortgage or pursue an FHA-insured mortgage.  Expanding mortgage financing opportunities is a link to enhanced property values by the facilitation of sales and refinancing opportunities.  Additionally, many lenders who process conventional mortgage loans require that condominium communities meet all of the requirements for FHA Certification before they will grant any conventional mortgages to purchase or refinance condominium units.

Zelmanski, Danner & Fioritto, PLLC, provides assistance to condominium associations with FHA certification. If you are interested in pursuing FHA certification for your condominium community, please contact our office, and we will be glad to provide a proposal for assisting you in this process.