Reasons why condo sales may slow down

Recently enacted Federal rules regarding FHA loans require these three elements to exist before FHA will approve a loan to purchase a condominium unit:

• less than or = 15% of (occupied) units' HOA fees are delinquent
• more than or = 10% of HOA budget must be held in reserves (most HOAs hold some in reserve, but many don't hold more than 10%) - This could require a hike in existing HOA fees even when the HOA has been fiscally responsible and held costs down.
• less than or = 50% of the units can be held/owned by investors

Source:  Atlanta Business Chronicle - September 3-9, 2010, page 8A

You may search this HUD condo website to see if your condo is approved and if originally approved before 2000, they will require full (not streamlined) recertification.

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