FHA Condo Approval Specialist: FHA Condo Approvals – Real Estate Agents “Get It”

FHA Condo Approvals – Real Estate Agents “Get It”

FHA Condo Approvals – Real Estate Agents “Get It”

fha condo approvalsMany condominium Boards and Associations with whom I speak are hesitant to get approved with FHA.  For one reason or another, they don’t believe that getting an FHA Condo Approval will be a benefit to the Association.

On the other hand, real estate agents “get it”.  Nearly EVERY real estate agent with whom I have spoken has said that it is a “no-brainer”.  Having the ability to use FHA, CHFA and even USDA loans to purchase units in a project absolutely affects their marketability.

Recently, I was speaking with a real estate agent in our area.  She had a listing in a condominium project that had lost its FHA approval a couple of months ago.  She said to me that she had spoken with other agents who also had listings in the same community and they all agreed that it was going to be difficult to sell the units without FHA buyers.  In fact, she went so far as to say that “the units might as well just expire now; they won’t be sold.”

The units in this project sell in the $100,000-150,000 price range, which is within the range of the majority of FHA buyers.  In addition, the FHA loan concentration in this project is 24%.  This means that without FHA approval, the Association is effectively eliminating 1 out of 4 buyers.

The numbers don’t lie either.  Here are some figures for CT compiled using sales data from 2013.

·        Bristol: 18% of condos are FHA-approved yet accounted for 53% of all condo sales.

·        Manchester: 22% of listings in FHA-approved condos expired versus 40% in non-FHA condos.

·        Manchester: 45% of condo listings sold, 40% expired in non-FHA condos

·        Newington: only 9 condos are FHA-approved yet accounted for 40% of all condo sales.

·        Rocky Hill: 18% of condos are FHA-approved yet accounted for 72% of all condo sales.

·        Rocky Hill: 72% of listings in FHA-approved condos sold versus only 44% in non-FHA condos

·        South Windsor: Units in FHA-approved condos sold 2.5x faster than in non-FHA condos

 [Data derived via CTMLS 2/6/2014]

I think that the expiration data effectively displays what real estate agents have been telling me: if the project is approved with FHA, there are more buyers which increase the chance of the units selling.

In Manchester, odds of selling are roughly 50:50 in non-approved projects.  However, in FHA-approved projects, less than 1 in 4 of the listings expired.

In Rocky Hill, if the unit is in an FHA-approved condo, the odds are nearly 2:1 that it will sell versus the units in non-approved condos.

You don’t have to take my word for it.

The National Association of Realtors® has been very active in working to persuade FHA to make it easier to obtain financing in condominium projects.  NAR, NAMB and CAI have all been involved in communication with FHA regarding this topic.  These large groups know that it is a detriment to condominiums to not have the ability to finance units with FHA loans.

The easy solution is to simply get approved with FHA.  The majority of the Associations that have contacted me are approvable.  The process is simple and the approval is relatively easy to obtain if you know what you are doing and know what FHA is looking for.  Hiring a professional can remove the pain and confusion from the process.

 

Image courtesy of masterisolatedimages/freedigitalphotos.net

The Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA.  We have assisted nearly 200 condominiums and we can help your association.

 

ReadySetLoan is an active member of the Connecticut and New England chapters of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.

 

Please contact us with any questions regarding FHA or VA condominium project approvals.  You can email me at askeric@readysetloan.com or call me at 404-433-4565. I will be happy to answer any of your questions.

 


FHA/VA Condo Approval Specialist

404-433-4565 Cell Phone

860-644-3772 Fax Phone

eric.boucher@readysetloan.com
ready set loan condo team

 

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Comment balloon 8 commentsReadySetLoan Condo Approval Team • May 14 2014 06:02AM

Comments

Eric, These agents with unsaleable listings must tell their clients that their HOA is causing them to lose value in their units (if the market is diminished, so is the value). They (the unit owners) definitely have a cause of action against the HOA. To sit by and do nothing would be a shame.

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) over 4 years ago

Bill, with the help of the agents, we are working to educate the Boards of Directors for these condominium projects about the benefits of being FHA approved.

Posted by ReadySetLoan Condo Approval Team, The FHA/VA Condo Project Approval Specialists (ReadySetLoan Condo Team LLC) over 4 years ago

Eric~ awesome information and post! "As agents we have to "get it" and with the help from you "we do"

Posted by Jon Kolsky, Licensed California Real Estate Broker (Kolsky Realty & Management) over 4 years ago

Hi Eric: I will give you a Standing Ovation for this article. It is not good news though that majority of the complex's FHA certification had expired.

Thank you for this great and valuable information.

Posted by Maria Gilda Racelis, Home Ownership is w/in Reach. We Make it Happen! (Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington) over 4 years ago

Good morning Eric. The proof is in the numbers, they don't lie. It is truly unfortunate that many board members just don't get it. Maybe if they were considering selling, they might understand.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) over 4 years ago

If you want to sell a condo in Ct get it FHA approved through Eric Boucher.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) over 4 years ago

Good Morning Eric: Moreover, FHA-approved condos, for us, are more desirable. Go and have more condos get certified.

Posted by Maria Gilda Racelis, Home Ownership is w/in Reach. We Make it Happen! (Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington) over 4 years ago

Thank you Jon.

Maria - I like to give credit where credit is due.  It is certain that an FHA condo approval is beneficial to condominium projects.

That is what I find, too, Joe.  Often, it's not until this issue "hits home" that Boards decide to take action.

Thank you Conrad!

Posted by ReadySetLoan Condo Approval Team, The FHA/VA Condo Project Approval Specialists (ReadySetLoan Condo Team LLC) over 4 years ago

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