What Are The Advantages Of FHA Approvals For Condominium Complexes?
- Increased Pool of Buyers. A significant percentage of homebuyers of condominiums are using FHA-insured loans. The credit score of these buyers is approaching 700, similar to buyers using conventional loans. A condo on the FHA approved list increases the value of its units by increasing the pool of purchasers for units that are for sale. It is simply supply and demand.
- Refinance Opportunities for Unit Owners. Unit owners desiring to refinance or do a reverse mortgage at today’s historically low interest rates using an FHA-insured mortgage will only be able to do so if the complex is approved.
- More Owner-Purchasers. Approved condos will attract a greater percentage of homeowners as opposed to investors; a higher percentage of conventional loans are investors who can afford the 20% down payment.
- Demonstrated HOA Stability. FHA-approved condominiums are viewed as stable communities because they have been reviewed and confirmed to have normal owner to rental ratios and HOAs that operate on a budget with solid reserves. This is attractive to potential homebuyers, no matter the source of mortgage financing they plan to use.