Pros and Cons to Obtaining FHA Condo Approval
60% of new home buyers intend on using an FHA Loan.
If your community does not have FHA condo approval, the potential buying pool of home buyers is potentially cut down by as much as 40%. Not only does FHA approval increase the number of prospective buyers, it may increase home value and marketability of the homes in the community. This occurs because a greater number of potential buyers may cause more demand within a community, causing the market value of units within that community to rise.
In addition, FHA approval creates a community of owners, rather than renters, as a) FHA loans are only available to buyers who will reside in the unit, and b) FHA approval dictates a maximum percentage of units that can be used as rental orinvestment property. There is no downside to FHA certification.
As Board Members and Property Managers carry a fiduciary duty to the residents, FHA approval is a logical step to help maintain or improve property values for the entire community.