Thanks to Andrew Kantor for his research and info on this submission to the VAR…
Many condo communities in the state have lost their FHA certification, something buyers and sellers don’t realize until a contract is blocked. So if you have clients that are in any way connected with condo or townhouse communities — owners, managers, potential buyers — they need to be aware of this: FHA revoked its certification of every condo earlier this year. If the management hasn’t reapplied, units can’t be purchased with an FHA loan.
Check your zip code before making an offer or accepting one. Go to VARealtor.com/condocheck. Enter a ZIP Code or just the city and state and you’ll get a listing of every condo association there. If the rightmost column says “expired,” it’s not FHA certified. Then it’s time to get in touch with any affected clients, as well as the condo board or association. There’s a good chance they’re not even aware of the issue.
Here’s the full article: http://www.varealtor.com/news/2011/11/fha-buyers-blocked-from-condos