Its always been a thing in the real estate business: If you’re financing a home purchase with a FHA loan most condominiums (here in Riverside and San Bernardino Counties, at least) can be scratched off the list. Why? Simply put, if the condominium complex is not FHA certified then FHA will not sign off on a purchase in that complex.
The simple question many buyers as is “why doesn’t the complex just get certified?” That question makes sense, but the current and hopefully soon to be old way of the certification process was a ton of red tape and bureaucracy, expensive, not to mention it had to be done every two years! It just wasn’t feasible for most affordable complexes to do it.
But now the U.S. House of Representatives just advanced legislation to make this process much easier thanks to H.R. 3700, A.K.A. the “Housing Opportunity Through Modernization Act”. If passed into law, the H.R. 3700 will essentially make the certification process “do-able” for many condominium complexes and ripe for affordable home ownership!
Please take a second and read the press release from the National Association of REALTORS: