Most condo projects in Orange County that are approved for FHA financing are going to need recertification after December 7, 2010. That is the date that any condo projects that haven't been newly approved in 2010 will need to either be recertified and fully approved.
Condo FHA Recertification or Full Approval- Which is it?
If the condo project was initially approved prior to January 1, 2000, then a full project approval is required. If the condo project was initially approved on or after January 1, 2000, then the project is eligible for the recertification process. Projects may be recertified beginning 6 months prior to the approval expiration or within 6 months after the approval expiration date. If the project is not recertified within 6 months of the expiration date, then the project will need to be fully approved by FHA.
Why FHA Approval is Important for Condo Projects in Orange County
FHA financing is the primary loan type for first time home buyers in Orange County. FHA only requires 3.5% down payment, and qualifying is flexible compared to most other types of financing. Quite often first time buyers are in the market for a condominium. But not all Orange County condo projects are FHA approved. As a matter of fact, quite a few are not. The condo projects that are FHA approved have a much better chance of maintaining a higher sales value since more Orange County home buyers are able to get financing to purchase these homes. Maintaining FHA (and VA) project approval is important if a condo project is to maintain property values.
How to Recertify an Orange County Condo Project
The recertification package may be submitted by an Orange County FHA Lender, builder/developer, Homeowners Association, Management Company or Attorney or Project Consultant who submits on behalf of one of the previously mentioned parties. Recertification packages cannot be submitted by borrowers, sellers, and/or real estate agents. The easiest way is to have the Condo Management Company proactively submit the package rather than wait until FHA Recertification is needed to close a transaction. Click the link to see the Orange County Condo Recertification Checklist.
Authored by Tim Storm, an Orange County, CA FHA Loan Officer – Please contact my office at Trust One Mortgage Corporation for more information about an Orange County, CA home loan. 877-786-4243 x 7. www.OCFHALoans.com
Call our office today and see how we can help you and your family. 877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com *Trust One Mortgage Corporation is licensed and supervised by the California Department of Real Estate (“DRE”), License # 01087829
