The average American family moves every 5-7 years. Some of these moves are planned while others are the reality of a job transfer, new and more exciting job, or just the necessity to move closer to or farther away from someone. However, if you live in a home that is part of an HOA, mainly a condo or townhouse complex, then you will struggle greatly to sell your home if it's not FHA approved.
Why? According to a recent survey from the home buyers institute, 87% of respondents are planning on buying their next home with an FHA loan. "But people plans can change, those are potential future numbers" you might say. Alright, lets look at the actual numbers. In 2006 FHA loans only accounted for 1.6% of all mortgages for new home purchases. As of 2010 that number is over 50%. Ballooned by the economy. FHA allows you to purchase with as little as 3.5% down as opposed to 5% or 10% required by other loan programs. 
Imagine if you took away over half of your pool of buyers, how much harder would it be to sell your home? Very. FHA loans are loans that are insured by the government against defaults. It's a safety net for banks. The Federal Housing Administration requires all condominiums and townhouse projects to be approved before they will insure a loan. Through February 2010, they would allow for "spot approval" so that one or two units could be approved for a sale even if the rest of the complex isn't. However, since then, FHA has required the entire complex to be approved. 
Don't wait until you lose that perfect buyer at the perfect price you want before you act. If you are not sure if your HOA is FHA approved, contact your HOA manager and find out. Talk with the board and have them start the process of gaining approval. After all, not only will you have a larger pool of buyers to work with, you will also be eligible for FHA refinance programs that carry some of the best rates in the country.

The average American family moves every 5-7 years. Some of these moves are planned while others are the reality of a job transfer, new and more exciting job, or just the necessity to move closer to or farther away from someone. However, if you live in a home that is part of an HOA, mainly a condo or townhouse complex, then you will struggle greatly to sell your home if it's not FHA approved.

Why? According to a recent survey from the home buyers institute, 87% of respondents are planning on buying their next home with an FHA loan. "But people plans can change, those are potential future numbers" you might say. Alright, lets look at the actual numbers. In 2006 FHA loans only accounted for 1.6% of all mortgages for new home purchases. As of 2010 that number is over 50%. Ballooned by the economy. FHA allows you to purchase with as little as 3.5% down as opposed to 5% or 10% required by other loan programs. 

Imagine if you took away over half of your pool of buyers, how much harder would it be to sell your home? Very. FHA loans are loans that are insured by the government against defaults. It's a safety net for banks. The Federal Housing Administration requires all condominiums and townhouse projects to be approved before they will insure a loan. Through February 2010, they would allow for "spot approval" so that one or two units could be approved for a sale even if the rest of the complex isn't. However, since then, FHA has required the entire complex to be approved. 

Don't wait until you lose that perfect buyer at the perfect price you want before you act. If you are not sure if your HOA is FHA approved, contact your HOA manager and find out. Talk with the board and have them start the process of gaining approval. After all, not only will you have a larger pool of buyers to work with, you will also be eligible for FHA refinance programs that carry some of the best rates in the country.