Mar 13, 2015

Is Your Condo on the FHA Condo Approval List and AHFC List?

One of the first things we ask our buyers when we sit down for a buyer's consultation is what type of financing they'll be using to purchase their new home.  If they are a condo buyer, we are most curious if they'll be using an FHA loan and if they are using any of Alaska Housing Finance Corporation's loan programs.  Why? Not all associations are approved for FHA or AHFC financing! If you bought your condo with one of those programs, it does not mean that today, it is still on that list.  If your condo does not have these approvals, it could affect the value because now there are less buyers that are able to purchase your condo because you've eliminated FHA and/or AHFC loan buyers!

What I find is that a lot of property management companies that take care of HOAs don't submit information as needed to keep those associations on the FHA and/or AHFC list. 

It's also important to remember that your association can fall of the FHA list for the following reasons:
-too many homeowners are delinquent in dues
-there are too many units in the HOA with an FHA loan on them
-the owner occupied/ tenant ratio is too high
-the association lacks the reserves to take care of major improvements

If your condo association is not on the approved list, it can take a few months for it to be put back on the list, however AHFC will likely take only about  a week!  If you are thinking of selling in the near future, then you need to take action now to check the approval status and request that your HOA submit their packages right away if they qualify to be approved! 

You can look up your association on the FHA list here https://entp.hud.gov/idapp/html/condlook.cfm and your AHFC approval here http://www.ahfc.us/buy/resources/condo-info/cic-list/ !  If you have any questions or need help looking up your association please call me, Brandi Croom, at 317-1992 or email me at brandi@thecroomteam.com.

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