FHA reinstatement for Condo

I'm looking for some informed opinions.

We lost our FHA approval a few years back due to a lawsuit. The suit was over a bad roof job which resulted in a small settlement in our favor. Because we have additional significant deferred maintenance we were told we'd have to get all of that taken care of before reinstatement would be in the cards.

Now someone who claims to be an FHA espert is telling an owner that we can get reinstated if we can show 10% of the funds required for all of this work in reserves. That sounds fishy. the prospects of borrowing the additional 90% are slim and none. How could they approve us with all of these loose ends?

I'm hoping to hear some insight from forum members before I contact FHA.

Thanks,

Melissa

Melissa,

The timing on your post is ironical to some information that I just recieved from my Florida neighbors.

Their condo was to be sold, had a good offer on it with a pending FHA loan by the buyer. During the preparation of the loan, the FHA asked to see the Reserve documents and current bank account information from the HOA. This condo developement has been in exhistance since 1987 and has a Reserve Fund of 90% total replacement of the buildings. The loan was TURNED DOWN. The FHA now requires the Reserve Fund to be 100% of replacement value of the buildings.