If you are thinking of buying a Minnneapolis, St.Paul, Twin Cities, Hennepin County, Dakota County, Ramsey County, Washington County, Anoka County, Carver County or Scott County condo for sale and might be using FHA FINANCING, beware!
After speaking with Drew Hendrickson, PHH Home Loans today (Drew.Hendrickson@phhonline.com 612-925-8436) it appears that we may be in trouble with regards to FHA Financing Approved condos…PHH Home Loans stated, “It appears that 483 out of the 1258 condo projects expire on 12/7/2010. That is 38% of the approved condo projects expire on 12/7/2010.” If you try purchasing a condo with FHA financing after December 7th and that developments FHA approval has lapsed…FHA financing at best will be delayed weeks to month, at worst, the development will longer qualify for FHA financing and you can no longer purchase that dream condo with FHA financing!
Download FHA approved list w/date of FHA Condo Certificiation Expiration below:
Below is the list of items needed for full FHA condominium condo flat approval. The document linked above has info that is not available if your just SEARCH THE MLS looking for Minneapolis condos for sale. If you want to buy a condo that is not approved or approval has lapsed, there is still hope! Below is a list of items that will be needed.
Documents Required for FHA/DELRAP Approval
Established Condo Needs list
As Of October 2010
Definition of Established Condominium: Buildings were constructed as Condominiums and all units, all common elements and improvements have been completed and final certificate of occupancy has been issued over one year.
Submit one (1) copy of each to Project Approval:
- FHA Full Questionnaire- must be current, fully completed and executed.
- Actual HOA Budget- Budget must include allocations/line items to ensure sufficient funds are available to maintain and preserve all amenities and features unique to the condominium project; provides for funding of replacement reserves for capital expenditures and deferred maintenance in an account representing at least 10% of the budget; and provides adequate funding for insurance coverage and deductibles.
- Copy of Master Insurance policy Must name the HOA as insured. Must have 100% replacement coverage. Must include all endorsements and evidence of fire, hazard, liability and fidelity coverage. Coverage should be adequate for the subject phase. Coverage types, amounts, and deductibles should be provided; and all buildings and/or units will need to be identified. For projects greater than 20 units, Fidelity/Employee Dishonesty required. Coverage must be no less than a sum equal to three months aggregate assessments on all units plus reserve funds. If the Association does not provide for “All-in” hazard insurance, then the borrower will need to purchase a Homeowners-6 (HO6) policy.
- Recorded Covenants and Restrictions Declarations- Must have recording stamp or recording information on it. Must have all or any annexations and Amendments.
- Executed and Adopted Bylaws- Must be signed and notarized even if the State that the Condominium is in does not require this.
- Recorded Condo Plat Map- Must have Condominium Legal description that matches the legal in the Covenants and Restrictions.
- Management Agreement- If applicable. If self-managed than nothing is needed.
- Recorded Condominium Site Plans- This is different from the Plat Map this shows an aerial view of all Condominium units.
- Articles of Incorporation-Must be filed with the state.
- Plan of Evidence of transfer of control- Can be a copy of the first meeting minutes.
