Not all condo projects are approved by FHA. This article addresses why FHA condo approval is important and I list condominium properties that are approved in Salt Lake City./
An FHA approval is valid for two years and must be renewed to remain valid. Some properties just let an approval lapse and don’t bother with the process to update that approval. Some submit an incomplete package to FHA.
FHA approval involves analyzing minutes of meetings, study of financials, determining the percentage of owner occupied vs rentals, understanding legal issues such as law suits, and a basic determination as to the safety in warranting a loan made on the property. Condominiums carry greater risk to a lender due to the community control rather than a single owner.
To me FHA approval is extremely important as the FHA review offers a more thorough review than done by a normal due diligence. I don’t claim non approved properties are to be rejected, I do suggest they require a deeper look into those important factors that FHA studies. I even suggest using an agent that is experienced in condominium sales and that is familiar with the risks each building offers.
Kathleen and I have lived in five condominiums during our marriage. We see the benefits. The older we became the more we loved the benefit of condo life. There are benefits beyond what I call “lock and leave” which is a benefit for sure.
One benefit some of our clients have taken advantage of is the FHA reverse mortgage. The FHA reverse mortgage allows someone age 62 to purchase with about 50% down and have no payments, ever. Another application is to own a condominium, having equity and use it to acquire a monthly income.
Another benefit is that an FHA guaranteed loan makes it easier to purchase with a lower (3.5% down payment and a more forgiving credit approval process)
As of this writing the following are Salt Lake City FHA approved condos. (remember it is a two year approval)
Angelina’s Corner – Application was rejected. Missing documents or incomplete package submission
American Towers, not approved. Application was rejected. Missing documents or incomplete package submission
Arlington Place – Approved -1/31/2018
Aztec – Approved 05/31/2017
Belvedere, not approved, Rejected: Missing documents or incomplete package submission
Belmont Downtown – Approved 6/12/2017
Belmont Plaza – Expired 2/5/2017
Bonneville Towers – Rejected 11/18/2016
Broadway Park Lofts – Approved 12/27/2017
Broadway Tower – Approved 9/2//2016
Canyon Road Towers – Approved/8/23/2018
City Crest – Expired 2011
Garden Grove West Jordan: rejected insufficient reserve funds.
Garden Park South Jordan – approved 3/8/2017
Garden Towers – Expired 1992
Governors Square: Rejected 2013
Library Square – Nearing expiration 4/7/2018
Market Street – Rejected
Northridge Heights – Expired
One and Nine – Expired
Panorama – request withdrawn 4/4/2017
Parc Gateway – Approved 6/28/2016
Pierpont Lofts – Expired 6/12/2105
Rockwell – Application rejected
Terrace Falls – Expired 2012
Trevi Towers – approved 12/1/2017 – Rejected Missing documents or incomplete package submission
Trolley Place – approved 2//8/2018
Trolley Regent – Expired 2011
To get to the FHA site with access to the complete up to date search CLICK HERE