Why is FHA and VA condo approval important?
Jill points out something that everyone should be aware of, and pushing for in the communities they serve. FHA financing opens the door to many more opportunities for buyers, and makes selling a property much easier. With higher debt-income ratios, lower minimum credit scores, less emphasis on reserves, and ability to utilize HUD approved DPA services, FHA is a far easier loan for many people to obtain than conventional financing.
FHA is not limited to people seeking "affordable" housing, either. In many areas of California (and several areas in other states) FHA loans are available for single unit properties and approved condos up to a loan amount of $625,500, and for 4 unit properties with loan amounts exceeding $1.2 million.
More Buyers!
When a buyer wishes to obtain FHA financing to purchase a condo, the condo community must be FHA approved to allow that to happen. Many homeowner's associations don't understand the importance of FHA and VA approval or that they must take action to get the community FHA approved.
I had a great listing in Aliso Viejo on 26 Florentine in the community of Tivoli I. One of the nice board members visited the open house and we got to talking.
I mentioned that FHA approval would be really beneficial to the neighborhood. She asked why. I explained that the buyer pool is much greater and values may even tick up a bit with FHA approval.
I was very impressed with this board member because she understood the value to the neighborhood, took the information and ran with it. The board hired a company to facilitate the approval.
Shortly thereafter, when I got my next listing in Tivoli I at 25 Florentine, Aliso Viejo, the HOA was already into the process of becoming FHA approved.
An agent contacted me saying his FHA buyers were interested in offering on the property. I followed up on the status of the approval and was told to expect to wait about a month. It was a case of under-promise and over-deliver. It was only a week before final approval was obtained and the FHA buyer bought the property.
Aliso Viejo's Tivoli I community is FHA approved. To see if a community of interest is FHA approved, you can check here.
See the OCAR video below for their thoughts on FHA and VA approval.
FHA Video for California REALTOR® Associations from OCAR on Vimeo.
Jill Murty, Realtor | Orange County, CA
949.355.5321
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