Community associations often ask if it is beneficial to pursue and maintain certification by the Federal Housing Administration (“FHA”) and the legal requirements and process to become FHA approved. Since the FHA insures mortgages against default, obtaining certification can reduce the risk to lenders and often results in a larger pool of prospective purchasers because of the additional financing available. Obtaining FHA certification can also stimulate property values. Under current California law, certain community associations are also required to disclose whether their projects are FHA or VA certified.
The experienced and knowledgeable HOA attorneys at Peters & Freedman, L.L.P. have help many HOAs determine whether FHA certification is desirable or achievable. If it makes sense to go forward, our experienced attorneys can help your community pursue certification. Peters & Freedman, L.L.P. assists common interest developments through flat rate assistance in preparing and submitting applications for FHA certification.