Finally, the Community Association Institute (CAI) has made a difference. New guidelines call for FHA-approved condominiums to be financially stable and require the mortgage lender to approve the association budget, reserve account and more.
The negative is that we may see Lenders resist it because it will be more work for them, but overall it is a great idea.
Condominium buyers can now purchase knowing that their lender has reviewed the association's financials and found them to be mortgage worthy.
Not only can the qualified buyer purchase with only a 3.5 percent down payment, the mortgage lender must review the reserves, and make sure the insurance policy is current.
CAI is the national voice of association-governed communities, which include homeowners associations, condominiums, cooperatives and other planned communities.
If you are an FHA Buyer and are interested in condos, talk to your real estate agent and lender to see how this may assist in your home search.
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