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FHA - Condo Approval for Existing Bldgs

The Busch Team, local lender in DC Metro Area, NW DC (DuPont, Logan, Georgetown)

F.H.A. CONDOMINIUM PROJECT APPROVALS

ESTABLISHED CONDOMINIUM ELIGIBILITY REQUIREMENTS

(As of December 7, 2009)

1. 100% completed

2. 100% sold and in a re-sale status.

3. No one entity may own more than 10% of the units. For projects with fewer than 10 units single entity may own no more than 1 unit

4. Unit owners are in control of the condo board

5. At least 50% of the project musts be owner occupied

6. No more than 25% of the project square footage can be nonresidential/ commercial. Any commercial space must be of a nature that is consistent with residential use of the project.

7. No more than 15% of the units in the project can be delinquent on assessments

8. The annual condo budget must include at least 10% of the budget allocated to replacement reserves. Any lesser amount must be supported by a replacement reserve analysis less than 1 year old.

9. The project may not be subject to any pending litigation or special assessments. If there are must have a satisfactory explanation.

10. Right of First Refusal language (if any) in the documents may not violate discriminatory conduct under Fair Housing Act (24 CFR 100)

11. Project must be covered by hazard, flood (if applicable), liability, fidelity bond, etc. In cases where the master policy does not include interior (walls-in) coverage the borrower must be required to carry a walls-in / HO6 policy for their unit

The Busch Team, local lender in DC Metro Area, NW DC (DuPont, Logan, Georgetown)
The Busch Team, local lender in DC Area, NW DC (DuPont, Logan, Georgetown)

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