Homes By Pat Ford

Good News! More Financing for Condos.

On October 26, 2015 FHA announced the guidelines of the  Housing Opportunity Through Modernization Act of 2016 (HOTMA).

Since 2010, they have only approved loans with owner occupancy ratios over 65%. This is the first time since then, that they will approve loans with more than 50% owner occupancy.

They still work to make sure that the project is stable by using guidelines to make sure that there enough reserves in the HOA account to handle emergencies.  (Financial documents (see Section 2.1.6) must provide for funding of replacement reserves capital expenditures and deferred maintenance in an account representing at least 20 percent of the budget) and no more than 10% of the owners can be in arrears with their association fees.

This news is exciting because:

  • It will expand the number of condo available currently available for sale.
  • Current condos in approved projects will be more salable, therefore helping them maintain value or even increase in value.

Below is a great a video explaining the benefits for a home owners association being approved as an FHA or VA project.  I would be glad send you FHA’s guidelines for getting approved or refer you to a company that helps with the approval process if you like.  Just email me at 


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<p><a href=”″>FHA Video for REALTOR&reg; Associations</a> from <a href=””>OCAR</a> on <a href=””>Vimeo</a>.</p>

Posted on November 1, 2016 at 6:35 pm by Pat Ford

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