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Macomb County condos for sale – sorting through the FHA guidelines for condo approvals

September 16th, 2009 · No Comments · Condos in Macomb County MI, fha mortgages and first time home buyers, tips for home buyers

One of the most frustring experiencesfor a home buyer in our area and all across the country is falling in love with a condominium and then finding out that it won’t pass muster as far as FHA is concerned.

We all try very hard to do our due diligence: Is the condo complex a new one?   Is the owners association healthy financially?  Has the association been turned over to the homeowners?

Even with due diligence surprises can crop up. I had this happen recently with a potential condo buyer in Macomb County.  We viewed a foreclosed upon condo in Macomb Township, and even though the complex seemingly had been finished for a couple of years, I noticed one small stretch in the middle of the complex in which the builder was starting construction on 8-10 new units.   Even though the complex is approximately 90% finished this type of new construction in the complex can make or break FHA financing on any condo in the complex. FHA requires that a condo complex be 100% complete.

If the complex above had been built in  phases then this wouldn’t be an issue, as the condo that my buyer liked was most likely built during the first phase.  However this condo complex was not built in phases.  To FHA it meant that the whole complex is incomplete and it’s a no go for FHA financing.

To make matters even more difficult FHA has new guidelines coming in to play on October 1st.

If you are thinking of purchasing a condo, please talk with your mortgage lender and ask him/her about what you should look out for in narrowing down your search so that you are educated about what will and will not be allowed.   I know I will be sitting down with my trusted FHA advisors and going over everything with them.

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Important copyright information: All photos were taken by Kris Wales. Do not copy and use photos for your own use, whether it be for personal or commercial purpose. All articles were written by Kris Wales. Once again, do not copy and use for your own purposes. Important disclaimer: Views expressed on the blog by the author and commenters do not express the views of Keller Williams Realty. All information contained is deemed to be reliable at the time of posting but not guaranteed.