Condo FHA Certification Expired! No notice from management! (mortgage broker, refinance)

[Susan Metzler]

I attempted to refinance my condo mortgage--wanted to get in on the lower rates before the government fiasco got any worse! My mortgage broker informed me that our association's certification for FHA financing expired in May 2011. I brought this to the attention of our board, who in turn inquired of our management company why we as owners were not informed before the expiration or immediately afterwards. She responded that there is no notice of this; it just happens. I find that hard to believe. Can anyone shed some light on this? Does anyone have any knowledge whether the management company, assuming some notice was provided, has a fiduciary responsibility to our condo association to let us know of the problem with FHA certification?

[gg]

I haven't dealt much with FHA, but historically conventional loans are more desirable. If you have good credit and you have good history of income, why would you go FHA? Check out some home equity rates if you have a good loan to value on your condo. Don't limit yourself to FHA, unless your credit is not that great and you are pretty extended in the condo. If you are extended, why refinance? Are you shopping for a lower rate? Trying to cash some money out? Banks aren't exactly looking for those trying to increase their debt load, but if you have the income to support it maybe. I would look at some of the smaller banks like ESB or something like that. They look at each person and don't just plug in some odd formula like a PNC would. PNC's loans are illogical much of the time. I mean, some people want to take out $20k on a home that is worth $300K and they may not have great income and PNC will pass on that. Makes no sense if PNC can lean a property with $280K equity after the loan, but they do stuff like that.

Check out other options. You might do much better than you think.