FHA Recertification Process: Some Good News

FHA Certificate Update

Of the 330,000 HOA’s in the USA, currently housing over 67,000,000 people, only 10% or 33,000 are FHA certified.  Having your HOA certification makes it easier to buy and sell homes in your community, thus helping your members.  There is controversy over this now, because many including CAI National believe that the FHA has set arbitrary standards, which do not measure the financial health of the HOA.  It has been working to get some of the rules changed.  Last November 13th, 2015 HUD revised the FHA recertification process, redefined owner-occupants, and clarified insurance requirements.  In a nutshell, it 1) expanded the old 6 month window of when to file legal documents to 12-months; 2) It changed the definition of “Owner Occupied” to include condos as secondary homes, so they can now be counted as owner-occupied units; and, 3) HUD expanded the type of insurance acceptable to include co-insurance, pooled insurance and state run plans.  The real game changer is the “owner-occupied” change as many of Florida’s 47,100 HOA’s will now find it easier to obtain their FHA certification.   (Read More)

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