Many buyers and sellers don't realize thast condo developments have a specific FHA approval process for financing, in the past this was done by mortgage lenders but this year HUD has allowed the developments themselves to apply for approval. Why would they do this - value for their owners. Prices in many condo developments have been falling across the country and these older condo developments whilst having been approved for FHA financing in the past found their approvals expiring. Many did nothing to extend these approvals and HUD actually extended many automatically last year but even this extension has now expired.
We have had several listings in Old Forge Crossing and the condo association actually undertook to get the development approved for FHA financing. Showings, prices and sales dropped whilst the development was not approved as buyers found it difficult to get financing. It took a lot of effort and filing of forms and cost, but it does add value to the units because they can now get buyers who might only be able to use FHA financing to purchase the homes on the market. Many of these condo developments charge a capital contribution fee due on settlement and these fees have been going unpaid as these homes have sat on the market with buyers unable to get financing. We have noticed a big jump in showings and homes going under agreement since the approval was confirmed and this source of financing was re-instated for buyers.
There are many condo developments along the Main Line and in the surrounding areas, most do not have approval, but lenders can apply for the approval process and as long as the settlement date can be a little longer the FHA approval can usually be accomplished and the financing of the deal approved. If you are looking for a condo or trying to sell one please contacts us for help.