With the changes that occurred in seeking FHA certification several years ago, many condominium associations decided it was easier to stop seeking certification and let buyers find other types of mortgages to finance the purchase of units within the condominium community.
Well, real estate professionals are pushing back. A recent Washington Post article, and several follow up stories are reporting that several statewide real estate associations are launching educational campaigns to educate board members on why FHA certification is good for communities. The Washington Post article reports that in the last four years since the certification process with FHA changed, the number of FHA loans in condominium communities has dropped by over 50%. It was also reported that in Ohio a seller ended up selling $10K below market because there was no FHA certification. This is something we cautioned might happen in our blog in 2011, shortly after the changes in the certification process.
If your community isn’t FHA certified, and you would like more information about how to get certification, feel free to contact Elina Gilbert at 303-991-2010 or read our article on the topic for an overview.