The purchase of a Rogers Park condo advertised as FHA Approved (not the condos shown left) by my buyer, Art, hit a bit of a snag last week. His mortgage banker, Michael Poland with Baird & Warner Financial Services, discovered that the condo development where Art was buying hadn’t been recertified for FHA approval. Michael immediately offered to help the condo association with the recertification to keep the sale together.
It will probably all work out, but unfortunately there’s been added stress for Art who still doesn’t know for sure that he’ll get financing to purchase his first home. It’s also been a lesson for me not to assume that condos advertised as FHA Approved are indeed currently FHA Approved.
It used to be that once a condo was FHA Approved it remained FHA Approved. That recently changed and now condo associations must be recertified every 2 years.
FHA spot approvals for individual condos have also gone away, but I still see them in condo listings. Some condo owners selling for sale by owner aren’t aware of the FHA rule changes.
For more details on FHA condo approval requirements read the Chicago Tribune’s, “The ABC’s of FHA condo requirements“.