Until several years ago, only 3 of the 17 condo complexes in the Central Market Condo area of Dallas, Texas, had FHA loan approval. If you wanted to get a mortgage to buy a condo, you got a conventional loan. As we headed into the wild and woolly downturn in the mortgage industry that began in 2008, conventional lenders became less willing to lend the money to condo buyers. Condos pretty much stopped being sold (except for deeply discounted properties that sold to cash investors).
In the past, in some parts of the country, there had been some really wild speculation going on in the condo market. After the bubble burst, Lenders loss lots of money cleaning up that mess. It was less of a problem in Dallas, although I remember in the early part of the last decade when investors from California or Florida would fly into Dallas for the day and be bused around to various new-construction condos for them to take a look at "investment opportunities".
Things have changed. Now, if you want to buy a condo, the only loans routinely available are FHA loans. As of April 1, 2013, 11 of the 17 complexes in the Central Market Condo Area have gone through the process of getting FHA Loan approval for the complex.
Those complexes are Bella Gardens, Birchbrook Manor, Birchbrook II, University Place, La Fontaine, Sandhurst Plaza, Williamsburg II, The Arrangement, The Danbury, Veneto and University Crossroads.
Why would a buyer care about buying an in FHA approved complex? FHA standards require a high level of owner occupancy. Why does that matter to a buyer? The theory is that an owner-occupant is going to be more involved in caring for their property than a landlord might be. An owner-occupant is going to be physically present enough to notice things that might not be noticed by a landlord. Complexes that are FHA approved also have to maintain a standard amount of financial reserves. They have to have by-laws and practices that affirm Fair Housing standards. The FHA Approval process substantially reduces the odds that an approved complex might engage in some of the forms of condo-management hanky-panky that sometimes happens.
Living in an FHA Approved complex is a good thing. There are currently a total of 235 approved complexes in the City of Dallas. I don't claim to know them all...but, I bet I know many if not most of them! Interested in living in a condo? Check out my website by clicking this link, here. Or, just call me at 214-228-9828! I'm always happy to help!