This is a tricky one. There are pros and cons to having FHA approval for condos and the words here alone will not cover it.
Firstly, different price ranges can matter significantly for us in Wisconsin as to whether or not such is desired.
Secondly, if you are reading this article right now because your agent brought you an offer with FHA financing, and your Association does not have such approval in place with the FHA, reject the offer or counter that type of financing out. It can take 90-180 days just to have the process started by FHA.
Moving forward, it may be difficult to get such approval, but it can be worth the effort if you can pull it off. There is a type of financing run by the Federal Housing Administration that is known as an FHA mortgage. The benefit of an FHA mortgage is the fact it allows a borrower to come up with only a 3.5% down payment.
It is in fact one of the most popular forms of financing. By not having the ability to get a buyer who wants to purchase using this type of financing may limit possibly qualified buyers. This could matter to you, because without FHA approval, your condo remains unavailable to a significant number of buyers ready and willing to give you the money you want for your place. There are a significant number of buyers who have great incomes but have not saved a large enough down payment for conventional financing.
BE PREPARED: There are rules that must be complied with in order to have FHA approval, and you may not like them. If you are ok with the rules maybe other Association members will not, and if the rules have to be changed members could vote against.
While getting your complex FHA approved may not be up to you individually, it could be important for you to convince the association of the necessity. As an Association this question should be asked. Having a complex with FHA mortgage approval can bring in more buyers, but it may lessen the rules that make all the appeal for your Association.
If you want to learn if a particular Association is FHA approved, email us and we will research it for you.