Is Your Association FHA Certified?
by Dennis Chvojka, Wintrust Mortgage
As of Feb 1st 2010 Condominium associations now have to prove they are worthy investments, according to new regulations from the Federal Housing administration. Associations with two or more units must be FHA certified before the agency will back a mortgage.
Based on the popularity of FHA mortgages, now is the time to certify that your association meets FHA’s guidelines. Conventional financing requires higher down payments and credit scores but qualified FHA buyers can own a home for as little as 3.5% down and can have a credit score as low as 620. In 2007 FHA insured 2 percent of home mortgages and in 2009 they insured 30% and the numbers continue to climb.
If an association isn’t certified they will not only miss out on a large pool of perspective buyers but they will also limit the ability for current homeowner’s to refinance their loans in
FHA insure products.
How does your association become FHA certified?
Community Advantage offers the ability for associations to become certified through our affiliate Wintrust Mortgage. Wintrust Mortgage has the ability to certify an association through FHA’s Direct Endorsement Lender Review and Approval Process, or DELRAP. The certification process is simple and inexpensive, starting at $500 for smaller buildings. An association would have to provide the following:
• Copies of their budget
• Insurance policy
• Dec and bylaws
• Management agreement
• Minutes from their last two meetings
Once these items are obtained the review and certification takes a couple of weeks and would last for up to two years. Upon completion of the certification process an association has now opened the doors for any purchaser to obtain FHA financing within the subject building.
For additional information please contact Dennis Chvojka with Wintrust Mortgage @ 847-842-2622 or via email: dchvojka@wintrustmortgage.com.
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