FHA Condo Approval Specialist: Condo Listings Expiring in Non-FHA Projects

Condo Listings Expiring in Non-FHA Projects

Condo Listings Expiring in Non-FHA Projects

fha condo approvalsAs part of my marketing efforts, I periodically compile condominium sales data for different towns, identify condominiums that are not FHA approved and start making phone calls.

Yesterday, in speaking with a real estate agent who lives in Cromwell, CT, she requested the condominium sales data for her town.  I have done several FHA condo approvals in Cromwell but I had never compiled this data.

What I found was staggering.

There are only 15 condominium projects in Cromwell and only 5 are approved with FHA.  Our office has handled 3 of the 5 and we are currently working on another one.  The average FHA loan concentration in the condominiums is 19%.

That’s not the cool part.

In 2013, there were 138 condominium units listed for sale.  Of those, 34 were in FHA-approved projects and 104 were in projects that are/were not approved with FHA.

In the FHA-approved projects, 26 of the listings (81%) resulted in closed sales and 3 of the listings (9%) expired.  Of the remainder, 1 is listed as active, 2 were canceled, 1 is under deposit and 1 was withdrawn.

In projects that are not FHA-approved, only 42 of the listings (45%) resulted in closed sales and 44 of the listings (47%) expired.  Of the remainder, 11* are active and 7 were canceled; there are currently no units under deposit and none were withdrawn.

In other words, if a condo unit is listed in a non-FHA project, it has a greater chance of expiring than it does of being sold!  Condo units in FHA-approved projects have nearly a 2:1 better chance of selling than those in non-FHA projects.

I have seen disparity in other towns, but not quite as striking as this.  These numbers clearly indicate an advantage in being on the FHA Approved Condos List.

[*Note: Of the current active listings, 7 of them are in a new condominium development and are priced in the range of $314,000-435,000.]

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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 Check out our article in Common Interest magazine on page 19!

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Comments

Statistics are so interesting when you go digging. This is fascinating news and I think you buried your lead a bit.  FHA approved condo's sell faster. Boom.

Posted by Larry Lawfer, "I listen for a living." It's all about you. (YourStories Realty Group) over 4 years ago

Larry said it all, FHA approved condos sell faster!!!

Nuff said.

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) over 4 years ago

Being FHA approved widens the pool of potential buyers, I lost oout on a couple of sales as a result of non-FHA approval as most first-time buyers rely on FHA loans.

Posted by Jim Sinnott, Realtor, GRI Licensed in MA and RI (Bedard Realty) over 4 years ago

They absolutely have better chance Eric. FHA's are geared towards a lot of first time buyers so the data makes perfect sense. 

Posted by Suzanne Otto, Your Montgomery County PA home stager (Six Twenty Designs) over 4 years ago

I know some people specialize in getting them approved.  I rarely see them.

Posted by Jeff Jensen (The Federal Savings Bank/Lending in 50 states) over 4 years ago

Many of our older, lower priced condos are difficult to sell because their is little interest in meeting FHA/VA requirements except for the unit seller. Buyers can only get these on a cash basis.

Posted by Wayne Johnson, San Antonio REALTOR, San Antonio Homes For Sale (Coldwell Banker D'Ann Harper REALTORS®) over 4 years ago

Eric - this is so interesting.  In Southern New Hampshire we only have a few FHA approved condos left.  I have heard through the grapevine that management companies were advised by their legal counsel not to have the association seek FHA approval because the FHA buyers were the cause of economic woes for the association.  Some associations and their management company will not cooperate with lenders who are willing to get approvals for this very reason.  I wonder if there is some sort of legal action for this discriminatory looking practice.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) over 4 years ago

Eric - excellent blog post... Very interesting. Even though we do not deal with FHA loans in regards to condos, and actually, hardly any loans due to the nature of our vacation beast, but the post is terrific, thank you.

That's new to me

Posted by Jon Zolsky, Daytona Beach, FL, Buy Daytona condos for heavenly good prices (Daytona Condo Realty, 386-405-4408) over 4 years ago
These rules seem to change in ebbs and flows as I said earlier to another blogger.
Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) over 4 years ago

It is difficult to sell condos that are not approved for fha financing.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) over 4 years ago

You have to blame some of this on the listing agents.  Do they know that the majority of the condo projects can't be sold through FHA Eric?

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

Eric, You really pinned down the condo market sales statistics for your area which should come in handy while working with clients.

Posted by Sam Miller, Knox County Ohio Real Estate Specialist (RE/MAX Stars Realty) over 4 years ago

That's correct Larry and Lenn.  FHA-approved condos sell...period!

I'm sorry to hear that Jim.  Many associations do not understand the importance of being FHA approved.

Suzanne - the State of Connecticut also has a first-time buyer program that uses the FHA approved condo list so not being approved rules out these buyers as well.

Jeff - I specialize in getting condos FHA approved!

Wayne - without FHA approvals, these condo associations are inadvertently inviting investors and once the balance tips to more than 50% investors, financing because VERY difficult to obtain.

Joan - these associations do run the risk of Fair Housing complaints if this is their reasoning.  I actually work with the largest condo law firm in New England and I have not heard this language from them.

Thank you Jon.  Condo-hotels don't qualify for many types of financing.

They do change from time-to-time Laura. 

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

It sure is, Gita.  I'm working hard to bring this to the attention of associations.

Conrad - I speak to listing agents all of the time.  Often they aren't informed as to how to go about getting the project approved.

Thank you Sam.  The goal is to collect the data and educate associations as to the detriment of not getting approved.

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

Eric, it pays to have the condos approved for FHA. Your stats prove it.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA over 4 years ago

Participate