Recently, a loan officer-friend of mine contacted me about a few buyers with whom he is working. The buyers are looking to move out of their condo units and buy single-family homes. The problem is that they have thus far been unsuccessful in selling their units to acquire the down payments for their new homes.
In all three instances, the condominium projects were not on the FHA approved condos list. The unit owners were aware enough to ask my friend what he knew about FHA condo approvals…so he contacted me. I provided him with a bunch of information about the benefits of approvals and the myths about FHA borrowers.
One of the unit owners spent her time to speak with all of the unit owners in the community that have their units for sale. She also conducted her own independent research online and is going to a Board meeting tonight armed with data to provide a compelling argument to get approved with FHA.
She produced a flyer to hand out at the meeting. I have a copy of it and have provided excerpts below.
Right now there are 5 units for sale from $164,900 - $209k and for several months have been consistently lowering their prices. Most sellers are willing to continue doing so to get their units sold and thereby, lowering the property value of other units within the development.
Pros of FHA Approval
-By obtaining FHA approval, current sellers do not have to continue lowering their prices below fair market value to get them sold and thereby, lowering the market value of the other units and the development as a whole. Therefore, FHA financing programs help to maintain or even increase property values by allowing more eligible buyers purchasing power.
“There goes the neighborhood” – FHA does not mean “riff-raff” and persons of low income or lower life status. People from all walks of life, incomes, current employment areas and educational backgrounds may not be able to afford or want to pay the typical 20% down payment for a conventional mortgage.
“It costs too much” – The average FHA approval service is around $1,500 and with 89 residents of Meadowview, that equates to about $17.00 per unit for the first 2 years and with a recertification cost of $800, that equates to about $9.00 per unit every 2 years thereafter.
FHA Approval Process Resource
The Condo Team at ReadySetLoan has helped over 100 condominium projects get approved with FHA since February 2010. Every condominium project that they have processed and submitted to FHA has either been approved or is in the process of becoming approved. In March 2014, they were invited to and attended the condominium approval roundtable session held at HUD in Washington, DC, as an industry expert.
I am SERIOUSLY considering contacting this unit owner to write our marketing materials for FHA condo approvals!
Image courtesy of stockimages/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 firstname.lastname@example.org 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
Check out our article in Common Interest magazine on page 19!