SusanK5 (Utah)
Posts: 30
Posts: 30
Posted:
What information do any of you have regarding the cost and what exactly is involved with haveing your community be approved for FHA loans? Thanks for your help.
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FHA CERTIFICATION FOR LOANS
Started by SusanK5 • 5 replies • 1858 views
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JoanneW2 (California)
Posts: 37
Posts: 37
Posted:
That depends on the size of the association and if you choose to send in the application yourself or use an agency to do so. We are an association of nine and sent in the applciation last moneh. The conusing part of the process was figuringout just what we needed. If you do not have a reserve study that was completed within the last 14 months than your HOA will have to oohave one completed.
KelliS2 (Georgia)
Posts: 5
Posts: 5
Posted:
We are just getting into this 'issue' as well. We have a buyer that lost a sale b/c we are not FHA approved. We don't know enough about FHA loans to know if we *want* to be FHA approved? Does anyone know positives or negatives, and how we find out what all of the requirements are? We're just a 3 person board, with 120 condo units (and a management company).
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Kelli, why hasn't any of the 3 Board members asked the managing agent to answer your questions on the pros and cons as well as the process to be FHA approved?
KelliS2 (Georgia)
Posts: 5
Posts: 5
Posted:
Hi Roger -
The management company has been involved, we just haven't gotten a lot of good answers back. We (the board) thought that the only issue was that we had more than 15% that were 30 days+ delinquent (we are at 18%). I spent hours going through each homeowner's account, and gave the MC a list of fees we were willing to waive (late fees), recommendations of some homeowners to talk to where it looked to me like they just didn't realize they hadn't paid their special assessment b/c they were otherwise up-to-date, and noted that it looked like a few people had just not changed their automatic bank withdrawl for their monthly dues to reflect the 2010 dues amount.
I was quite frustrated to even feel like this was my job, but was just trying to get us to that magic number of being under 15%, and get some old crap cleaned off of our A/R report. We DID get there, due to a few things I suggested, as well as a couple of payments coming through from our accounts in litigation. But that was through March 15. Now we're past April 15th, and it's back up over 15% again. (I should clarify - this is a condo associaton with monthly dues)
We just got an email yesterday from the potential seller where he was forwarding info. from the bank talking about the new FHA guidelines, and that it took 4-6 weeks for approval, that our MC had not done the paperwork, etc. That's when I started researching and finding all of these new guidelines, this board, etc. So this is all new info. and we're just getting frustrated trying to get to the bottom of it.
Earlier today I sent the following questions to the MC:
1. Do we want to be FHA Approved?
2. What are the benefits?
3. What are the downsides?
4. If we agree that we want to be FHA certified, what paperwork is required?
5. Who completes this paperwork?
6. What will the cost be to the HOA?
7. What other rquirements would we need to meet?
8. Is this what your continuing ed class is about?
9. What is *MC* doing for other condo associations that you manage with regard to this?
Is there other questions I should be asking? Hopefully we'll get clear answers back quickly.
Thanks!
The management company has been involved, we just haven't gotten a lot of good answers back. We (the board) thought that the only issue was that we had more than 15% that were 30 days+ delinquent (we are at 18%). I spent hours going through each homeowner's account, and gave the MC a list of fees we were willing to waive (late fees), recommendations of some homeowners to talk to where it looked to me like they just didn't realize they hadn't paid their special assessment b/c they were otherwise up-to-date, and noted that it looked like a few people had just not changed their automatic bank withdrawl for their monthly dues to reflect the 2010 dues amount.
I was quite frustrated to even feel like this was my job, but was just trying to get us to that magic number of being under 15%, and get some old crap cleaned off of our A/R report. We DID get there, due to a few things I suggested, as well as a couple of payments coming through from our accounts in litigation. But that was through March 15. Now we're past April 15th, and it's back up over 15% again. (I should clarify - this is a condo associaton with monthly dues)
We just got an email yesterday from the potential seller where he was forwarding info. from the bank talking about the new FHA guidelines, and that it took 4-6 weeks for approval, that our MC had not done the paperwork, etc. That's when I started researching and finding all of these new guidelines, this board, etc. So this is all new info. and we're just getting frustrated trying to get to the bottom of it.
Earlier today I sent the following questions to the MC:
1. Do we want to be FHA Approved?
2. What are the benefits?
3. What are the downsides?
4. If we agree that we want to be FHA certified, what paperwork is required?
5. Who completes this paperwork?
6. What will the cost be to the HOA?
7. What other rquirements would we need to meet?
8. Is this what your continuing ed class is about?
9. What is *MC* doing for other condo associations that you manage with regard to this?
Is there other questions I should be asking? Hopefully we'll get clear answers back quickly.
Thanks!
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Kelli, don't you just love those proactive MCs 
My first question would be " is the management company doing everything agreed to in the management agreement? If so, do you need to amend that agreement to require them to be more effective in collecting on delinquent assessments? Seems to me that things you listed related to delinquent accounts should have already been done by the MC. The A/R are unacceptable by our standards; I would be shopping around for a better MC 
My first question would be " is the management company doing everything agreed to in the management agreement? If so, do you need to amend that agreement to require them to be more effective in collecting on delinquent assessments? Seems to me that things you listed related to delinquent accounts should have already been done by the MC. The A/R are unacceptable by our standards; I would be shopping around for a better MC 🎯 You've read this entire discussion
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