[Deb Krantz]

Deb Krantz

I’m hoping some of the readers in areas with single family home condo communities can offer some suggestions.
,
, I can buy a decent home in a condo community.  All the properties in the development are free standing homes (215 of them).
,
, I was advised to find out if the community is approved for FHA financing.  I found a website where I confirmed that it is approved.  
,
, 1. Is that FHA approval permanent?
, 2. If #1 answer is NO, where do I find out if the development still meets all the criteria for FHA approval?
, 3. What other due diligence should I do so I know I can someday sell this home to a buyer who needs conventional financing?
, 4. Are there any restrictions on me getting private financing?  What will private funders want to know to make them feel safe lending on this property?
,
, Many thanks!
,
, Deb K
, Columbus Ohio

[Deb Krantz]

Deb Krantz

This has been an enlightening journey. I got my questions answered.

[Jackie Lange]

Jackie Lange

HI Deb

I think FHA will only approve if the majority of the homes are owner occupied ( not rentals).

What did you find out about the rules and the condo yu were considering purchasing?

[Deb Krantz]

Deb Krantz

I talked to the property management company hired by the condo association.  There are no restrictions on financing and no restrictions on how many can be rental homes.  There’s good and bad to the latter part of that sentence.  On financing, FHA can give a community blanket approval for financing  for a period of time.  That approval needs to be renewed every now and again. 

[Jackie Lange]

Jackie Lange

Deb, suggest that you also talk to a mortgage company to see what they have to say about financing in a condo community. I do think there are some restrictions on lending if the volume of rentals passes a certain threshold.