Why Do Condos Need FHA Approval

FHA policy require that a Boston condo association or a Boston Seaport condo development must have FHA approval and appear on HUD’s approved roster in order for an FHA loan to be possible for Boston condos for sale  purchase or refinance.

Why Should I Care? I’m Not Buying a Boston Downtown Condo

This is important because now more than half of all new loans for Boston Seaport condominiums and downtown Boston condos — purchase and refinance — are FHA insured loans.

87% Buyers Plan on Using FHA to Buy Condos

A recent survey shows 87% of home buyers indicating they plan to use FHA loans and many of these prospective Boston condo 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 Seaport Condos that Aren’t FHA Approved are Missing 87% of Buyers

So it’s obvious that Boston Seaport condominiums for sale and Boston downtown condos 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 condo buyers, those Boston Seaport 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 Boston Seaport condo developments are satisfied at the time the loan is funded.

Is My Condo Complex FHA Approved?

Find out if your Boston Seaport 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 Boston downtown condo on the market, check out whether your condominium  association is approved by the FHA and on the HUD roster. If not, speak with your condo 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 Boston condo.for sale

Boston Realtors Specializing in Condos

With over 20 years experience in real estate, I have the knowledge to help you navigate through the red tape and get your Boston downtown condo sold faster and for more money. Considering selling?  Then, call us at 617-595-3712 or email us at realtyford@yahoo.com to schedule a no obligation consultation. Together we’ll come up with a plan to sell your Boston condo faster and for more money.

Boston Seaport Condos for Sale


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