If you are the owner of a residential condominium unit, an officer of a condominium association, a property manager, or attorney, this information that you are about to read is extremely important to protect and preserve the property values of units in a condominium complex.
As a licensed real estate appraiser and broker, I have recently noticed that a typical residential condominium that is financed with conventional financing in many instances requires a minimum of a 10% to 20% downpayment, in lieu of the 3.5% downpayment required for FHA mortgages. There are also additional requirements for borrowers for these conventional mortgages. These obstacles can make it nearly impossible for residential condominium unit owners to sell their units. This lack of the marketability of units within a condominium complex may result in a decline of property values of the individual units.
A condominium complex that has units that are able to be financed for typical buyers in the market, should result in the stabilization and increase in unit values within the complex. Additionally, this will help unit owners who are not selling and remain in the complex, because this stabilization and increase in unit values results in comparable sales data for units within the complex. This comparable sales data from increased sales can then be used by appraisers in refinancing transactions. This may allow these unit owners to refinance their units and enjoy historically low interest rates as the units within the complex appreciate in value. A lack of sales has recently resulted in a decline in property values in many complexes, particularly those that are not FHA approved.
Our firm specializes in providing FHA condominium complex approval services. We have researched and studied the intricacies of the FHA guidelines and requirements. Hiring our firm to expedite this approval will streamline the process and provide turnkey results. HUD is busy processing these submission packages, so if interested it is prudent to act quickly.
If your complex was listed on the FHA Condominium Approval Roster prior to October 1, 2009, then your complex will require re-approval from HUD. The guidelines and requirements for FHA Condominium Complexes have changed.
Please feel free to contact us for a free consultation.
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