Are you trying to get your condominium association FHA approved?

Since FHA mortgages can require a down payment as low as 3.5% of the purchase price, more and more buyers are applying.  If you are putting your condominium on the market, or if you are on the board of a condominium association where it has been difficult to sell condominium units, you may want to consider getting the association FHA approved.  This will make it easier for potential buyers to purchase in your association.

Unfortunately, not all condominium associations will qualify for FHA approval, but if your association meets the following criteria, you have a good shot:

1.   No one investor can own more than 10% of all units.

2.   Only up to 15% of units can be past due on assessment payments.

3.   Only up to 25% of the association can be used for commercial purposes.

4.   At least 50% of the units must be owner-occupied.

If your association meets all of these criteria, and if your association applies for FHA approval and is approved, FHA will still only fund up to 30% of the total units in the condominium association.  Regardless, your pool of potential buyers will expand, making it more likely that units in the association will sell!