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What HOA reserves are needed for FHA loans?

| Condo & HOA Law |   Tennessee |  


Question:

Our HOA is comprised of PUDs. When a unit sells we usually get a form from bank regarding the amount of past dues. Some forms require input regarding capital reserves. 
I read that in order for a unit to qualify for government backed mortgages, FHA etc..., 10% of annual dues must be deposited in a separate bank account titled capital reserves.
I have tried locating the referenced HUD form 921 and the related rules regarding these requirements and that such requirements pertain to PUD  Can I get help?  TN


Answers (9)

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