CAUTION: FHA Approved Condos – Endangered Species
22 Feb
When FHA spot approval discontinued back in February 2010, I thought "Well, OK. There are still FHA approved condo projects." FHA approved condo projects are becoming more and more like an endangered animal. The numbers are dwindling right before our eyes. This is because of the cost to become an FHA approved condo according to David Dikeman from Insight Bank. Condo Associations are finding that, in order to survive this economy, they need to cut the cost of obtaining FHA approved status from the expenses. This leads to only two types of possible sales now - Conventional Loans or Cash. FHA has essentially cut the first time home buyer market right out of the equation. Well, of course unless they can do a Conventional Loan or Cash.
This is not at all helpful to a struggling Real Estate market. It is essentially hand cuffing and blind folding REALTORS® from selling condos. Condos are great option for people. Just wish FHA felt the same.
