Recent changes in FHA policy require that a condos association or development must have FHA approval and appear on HUD’s approved roster in order for an FHA loan to be possible for a Boston Beacon Hill condominium, or any downtown Boston condo purchase or refinance.
Why Should I Care? I’m Not Buying a Boston Condo
This is important because now more than half of all new loans for Boston downtown condominiums and townhouses — purchase and refinance — are FHA insured loans.
87% Buyers Plan on Using FHA to Buy Condos
A recent survey shows 87% of Boston home buyers indicating they plan to use FHA loans and many of these prospective home buyers can only purchase with an FHA loan because of the lower down payment requirements. FHA loans require only a 3.5% down payment, the lowest of any loan program available in the city of Boston. A conventional loan – a loan not insured or guaranteed by a governmental entity – typically requires a 20% down payment. And, FHA loan credit qualifying requirements are easier to satisfy allowing many more potential home buyers to obtain financing.
Boston Condos that Aren’t FHA Approved are Missing 87% of Buyers
So it’s obvious that downtown Boston condominium and townhouse associations that are not FHA approved are missing out on a significantly large segment of the home buying public. First time home buyers make up the greater share of the condo and townhouse market. These buyers are most likely shut out of the market without FHA approval.
More Potential Buyers = More Money for Sellers
With a larger pool of Boston Midtown condominium buyers, condos will sell faster and produce higher prices due to the law of supply and demand. Higher sale prices mean higher appraised values for all units in the complex because the comparable values will help establish a realistic price and trend. Without FHA approval, condos for sale can sit on the market for an inordinate period of time and sell for reduced prices due to the low demand.
No FHA Approval, No FHA Loan = No Sale
Though FHA approval makes an FHA loan possible, an FHA transaction will not occur unless certain eligibility criteria pertaining to the condo or townhouse development are satisfied at the time the loan is funded.
Is My Condo Complex FHA Approved?
Find out if your Austin condo complex is FHA approved by searching this database. The easiest way to find your condo is to put in your zip code and read through the list.
Need to Sell Your Austin Condo? Start the FHA Approval Process
Before placing your condo on the market, check out whether your condominium or townhouse association is approved by the FHA and on the HUD roster. If not, speak with your condo assoc board or property manager about starting the process. The approval process can take months. The earlier you can start the FHA approval process, the faster you’ll be able to sell your condo.
Austin Realtors Specializing in Condos
With a combined 50 years experience in real estate, we have the knowledge to help you navigate through the red tape and get your Austin condo sold faster and for more money.
How Much is My Condo Worth?
To help give you an idea of what your condo could sell for, check out our Market Snapshot Tool. With just your zip code, we can give you detailed info about recent sales in your area – including sold prices. Need a more qualified range of what your home is worth in today’s market?