FHA Condo Approval HUD Minneapolis St. Paul

Check all CIC townhomes and condos here to make sure they are FHA HUD Approved.

Other factors not commonly known that will still be detrimental to successful financing with a condo even after we verify at the HUD condo lookup that the property is FHA approved.

  1. Commercial Space: No more than 25% of the property’s total floor area in a project can be used for commercial purposes
  2. Investor Ownership: Generally no more than 10% of the units may be owned by an investor. This also applies to developers/builders who subsequently rent vacant unsold units.
  3. Delinquent HOA Dues: No more than 15% of total units can be more than 30 days late in arrears of their association fee payments.
  4. Pre-Sales: At least 30% of the total units must be sold prior to endorsement of the mortgage in the case of new construction
  5. Owner Occupancy Ratios: At least 50% of the units must be owner occupied or sold to owners who intend to occupy the units. For proposed, under construction projects still in their initial marketing phase, FHA will allow a minimum owner occupancy amount equal to 50% of the number of presold units (the minimum presale requirements of 30% still applies)
  6. FHA Concentration: FHA may not insure more than 50% of a particular condo project. For projects consisting of 3-4 or fewer units FHA will insure 1 unit.

If these challenges are not researched prior to going under contract the lender will be alerted when they go to order a case number and HUD rejects the property address.

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