The FHA Role in Your Condo
The FHA condo approval is one of the most sought approvals in the condominium industry in the country. FHA or the Federal Housing Administration is a government agency which provides insured loans that are used home buying and home building. This agency was created as part of the National Housing Act of 1934. FHA aims to provide a healthy home financing system industry by insuring mortgage loans, improve home and housing standards and conditions, and to check and balance the mortgage market. FHA is the primary authority when it comes to financing concerns about housing and mortgage.
Requirements for Condo Approval
For your place to be given an FHA condo approval, you, as the home lender, must adhere to some requirements and undergo the process of application. The requirements for your condo approval are quite numerous and complex. For example, an investor to the condominium cannot own more than ten percent of the condo property. These rules also vary depending on the size and quantity of the condominium project. To have a complete list of these requirements, you can visit the FHA website at www.fha.com. There are also quite numerous documents you will need such as financial, legal, and insurance documents. After having the Federal Housing Administration approval, you and your condo project can now enjoy the benefits and services of the FHA.
Benefits of Getting Approved
Condominiums who are given FHA condo approval are now entitled to the FHA’s benefits and services. Property lenders are now protected through its mortgage insurance. Borrowers’ who will be lent with more than 80% of the property value, then it is really risky for the lender to give them the loan. With FHA mortgage insurance, property lenders are now worry-free when it comes to lending large amounts of property. The FHA mortgage insurance can now more affordable to high-risk borrowers. One thing very good about FHA mortgage insurance is its rates do not increase when the borrowers’ credit scores decrease while conventional mortgages are highly-dependent on the credit scores of the borrowers.
Making House Financing Stable
There’s a lot of services that the FHA offers to the consumers of the housing industry. FHA provides the certain balance and protection for every stakeholder in the housing industry. Having the FHA condo approval is just one of the most useful services they are offering.