The lending environment is tighter than ever right now. Well at least much, much, and super much tighter than recent years. In fact FHA loans have become back in style because they are pretty much the lowest down payment loans available now. Sure, don't get me wrong, there are always some unique programs out there that may or may not work for people. However I'm speaking in generalities right now. And right now loans are harder to get.
Well one of the market areas, or sub-markets, of the real estate market that is affected even more so by these changes is the condominium market (lovingly referred to as condos). FHA has an Approved condo list in every area. Many areas have few to even fewer approved communities on this list though. Why is that? I don't know. It may have something to do with the developer when the community was created/converted. Or it may have something to do with the FHA not being pro-active in getting communities involved. I have no idea, and don't claim to know why these lists are so bare. However, it doesn't change the fact that there are so few communities on these "approved" list.
The Fountains at McLean and the Gates of McLean is one of these communities missing from the list. Not being on the "approved" list means that it is harder, if at all possible to get that increasingly popular and increasingly necessary FHA loan through. This is now the loan of choice and necessity for first time buyers. And in our area a first time buyer buys a condo.
This is a Catch-22 that must be addressed. But by who, and how.....?
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