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FHA Certifications - Debunking the Myth that the Association isn't doing Enough

Association Boards are tasked with the decision to allow FHA Financing in the community. The Association must engage in the process to become FHA Approved. The approval process can cost the association approximately $1,500-$2,000. The paperwork process is not simple. It typically requires the management company several hours to gather and collect all of the documentation required to submit to an attorney’s office or a mortgage company handling the application process. The items collected are compiled along with a completed FHA application to be mailed to the FHA office in Washington D.C. Once the application is submitted, the process is officially began and monitored until an approval is made or denied.

During this time the attorney or mortgage office may have additional questions for the Association. Sometimes the questions can be answered quickly and fulfilled; however in some cases the questions can disqualify a community. In these cases, a community could not qualify for FHA financing for reasons such as delinquencies that are too high or too many rentals in the community.

The entire process can take anywhere from 3 to 6 months. However, this process is just simply different and unfortunately the Association and Association Board have no control over the amount of time an approval can take once the process has begun. It may feel like a hurry up and wait situation for the buyer(s) and the association’s board. However, the good news and the light at the end of the tunnel, is an approval typically lasts for a window of 2 years.