Hello all-

I really need help with this as I tried to Google as much as I can and don't know exactly what I'm reading or where to look. I put an offer on a short sale on 8/29/2009 and I was in it for the long haul and have been very patient. I got word last week that both mortgages were approved and that we can move forward. To say the least I was happy...................

2 hours ago I got a call from my lender and real estate agent and my lender goes on to explain that the FHA loan that Im getting did a Condo Questionnaire and the particular complex that I'm buying in does not meet their guidelines and is not approved. The reason is that more then 15% of the condo owners are not current with their payments to the association. Now I understand why FHA does this but shouldn't my agent and lender have picked up on this back in August!!!???

With all that in mind I want this property. I searched for months and its the ONLY one in the area that fits all my needs therefore I still want it. Is their anyway to get around this FHA guideline? I imagine not but...just maybe something? My lender says their is nothing I can do with FHA and the only other options are to go with a Fannie Mae/Freddie Mac loan (down payment doubles) or to pursue another property.

I didn't waste 7-8 months time to just give up on this condo so if anyone has any information that can help I would really appreciate it.

Thanks
H

FHA has condo requirement minimums that must be met.How many condo's are current,how many foreclosures,and how many investor owned properties there are in the establishment can change over time just like your credit score.

You will have to do as your mortgage broker stated or look at other properties. FHA is not going to break their rules for YOU.

no legal advice

Ok thanks...

The condo has 67 units.... which means 10+ are not current. Lets pretend the number is 12 and 4 pay tomorrow and are current... can FHA approve? Am I able to find this information out or is it only available to lenders/agents? Am I able to pay for a owners fee that isnt current to make them current? When the FHA goes through the process is it what they have on the books that day/week/month?

Its all quite confusing but I believe, good questions.

Years ago, FHA would sometimes do spot approvals for condos that were not approved. I think that program went away.

A couple of points:

1. The delinquency rates tie almost directly to the need for a condo to raise their monthly fees or even have a one-time special assessment. That would impact your monthly payment and could put your ratios out of whack.

2. No matter how nice the property, do you really want to live where this large a percentage are delinquent? Often these are the same people that have no regard for the common areas and little regard for your quiet enjoyment of your property. It's generally not a few days but months and months, so don't expect that 3 or 4 people are going to pay up tomorrow.