B.T. from outside of Connecticut writes:
Dear Mister Condo,
My clients live in an attached Planned Unit Development (PUD) complex; they are refinancing their home using and FHA-backed mortgage. There are only 9 units in the complex. Does the 15% delinquency rate apply? 2 of the units are late making the rate 22%.
Mister Condo replies:
B.T., thank you for writing, I am not an expert on Planned Unit Development (PUD) financing but in the past, FHA did not concern itself with PUDs, treating them as single family homes rather than community associations. If that is still the case, there will be no FHA requirement of the community with regards to financing. Of course, you may wish to speak to a mortgage loan originator to confirm this information but my understanding is that the delinquency rate of the PUD will not affect the availability of a mortgage that is backed by the FHA. Good luck!