R.P. from Fairfield County writes:
Dear Mister Condo,
How can I persuade or threaten my condo board to apply for FHA certification so I can get a reverse mortgage?
Mister Condo replies:
R.P., let’s stick with persuasion tactics. Generally speaking, FHA certification is good for all unit owners within a condo. It makes for better funding opportunities for unit owners looking to buy, sell, refinance, or obtain a reverse mortgage as you are seeking. If the current Board is unable to unwilling to seek FHA certification, I would ask to have the FHA certification discussion added to a future Board meeting and bring in an FHA expert to speak with the Board. There are several right here in Connecticut who would be happy to discuss the methodology and why it is in the condo’s best interest.
If that strategy doesn’t work, it is time for a new Board. Elect Board members who understand the value and are willing to work towards FHA certification. Keep in mind there are factors such as how many unit owners are delinquent in common fees and how many units are rented or already mortgaged with FHA-backed loans than could affect your community’s eligibility. For the latest on FHA news, I suggest you check out the FHA Page at the CAI National website at http://www.caionline.org/govt/MortgageMatters/FHA/Pages/default.aspx. Here you’ll find information and more links to web resources to guide you in your quest. All the best!