HausFS has been working with many clients in obtaining FHA Certification in order to facilitate unit sales. Sales often fall through because the buyer requires an FHA insured loan, and the association is not yet certified or cannot be approved for certification for a number of reasons.
- Delinquencies are a huge problem for FHA Certification. Associations with more than 15% of units that show assessments delinquent for 30 days or more will not qualify for FHA Certification. That means a 10-unit building cannot have more than a single delinquent unit.
- Lack of reserves planning is also a potential problem. Your annual budget must show at least 10% allocated to reserves.
- Special assessments can prevent FHA Certification as well. If your association has issued a special assessment to obtain needed funds for a major capital repair project, you may not be able to obtain FHA Certification.
