PM wants us to get an FHA approval through bank

I would recommend calling that "specific bank" and ask questions as to why your association should be charged for supplying them with information that would assist their business and lending process.

Who is asking for the $1200, the PM for processing the paperwork? I don't see anything on the FHA/HUD asking for any monies to get approved.

www2.featuredwebsite.com/users/27905/downloads/FHA%20Minimum%20Property%20Standards.pdf?id=0.2586001

Here is a link with the FHA standards..Can you please send me $1200.00

FHA verifies the status of each home and HOA, just because you qualify today does not mean you will qualify next week.

I think all the posts from JohnG35 were removed from the individual discussion threads but the threads still show up on the menu with his ID as the last poster.

Yes,

JohnG35 came onto this forum earlier today and revived about a dozen old threads so that he could spam this forum with links to his business. This violates the rules for this forum and several members complained to the admins. The site admin removed all of JohnG35's messages but the menu shows that he was the last to post on those threads. If you open the thread you will not find JohnG35's message but you will find a lot of outdated discussion.

Juancito,

Not likely a scam. The cost to get FHA approval can run from free to over $2,000 depending on many factors. It can be a complicated process especially if your paperwork, documents, site plans etc.aren't in order. The bank won't know if the FHA will accept the application, but they will still have to do the work so, of course, they will charge for doing the work.

Your first step should be to look up what the FHA requires for certification and be sure your association has all of that in order. They are very clear on most of their requirements. Where it gets tricky is when it comes to things like flood plains, making sure all of your bylaws, declaration etc. are properly recorded. That is why the first certification can require a lot of time and money.

They were very lax in the original certifications before the 2008 crash of the mortgage market, so they now require all associations to be researched and newly certified from scratch and re-certified every two years to be sure you remain compliant with their regulations.

This is a 4 year old thread that was reactivated by an individual to post spam.
The spam has been removed but the thread appears new because it was reactivated.

Big misconception - we thought that too, but FHA is no longer for poor people or low income. They cover loans up to $300,000+ and if you have a Fannie Mae or Freddie Mack mortgage it is probably backed by the FHA.

Even if you pay your mortgage to a bank or other lender the chances are pretty good that it has been sold to one of those two and backed by the FHA. The lender is only acting as an intermediary for them. More than 90% of condo mortgages are held by Fannie and Freddie... not sure about HOA'S.

Most lenders since 2008 rely on the FHA guideline now since they tightened up their approval process.

I suggest going to your bank and talking to a loan officer about your particular situation and the need for FHA approval. They were a great help to us. I went to three different ones and the answers were all the same. That was when we changed our mind.

You are correct that FHA would not be the first choice, but for many people it is the only choice and no longer has a great deal to do with whether you are poor or not... bad financial management or no money for a down payment maybe. FHA approval can be important, especially if you live in a condo and is pretty well essential if your association allows rentals. HOA's probably not as much.

Again I suggest association thinking about FHA approval go to a bank loan officer and talk to them about their particular situation and area. It was an eye opener for us.

Last year we sold our Condo and found out during the process that the PM has let the FHA approval for the community lapse. Then we found out that no one does FHA spot approvals sfor individual properties. That was my understanding, so what you telling us sounds fishy. Now getting the whole community recerted and approved for FHA is a challenge and there are specialty companies out there that do this, but I would not pay them a dime up front. I know that there was a good one out of California, that did not charge an upfront fee.
CAveat Emptor.

Tim is right, things have changed in the last couple of years. It's a whole new FHA and most lenders now rely on their guidelines.

When you hire someone to do your FHA approval they can't give you a guarantee. The FHA makes the final determination. There is no way for the person doing the work to know if the FHA will approve your association until they actually do the work and submit the application. If you don't qualify, it has to do with the association itself and not with the person doing the application.

Everything is checked, the recording of all your legal documents and amendments, meeting minutes, financials - including the amount of your reserve fund, number of rental units, any litigation against the property etc. etc. etc.

Check around, the cost to have the FHA approval done can vary a lot.