FHA and VA Condominium Project Approvals
Coast Management of California can assist your association in obtaining FHA and VA approvals for your condominium community. We highly recommend that you obtain these approvals because having FHA and VA approval is nearly certain to result in increased property values. A more extensive list of advantages follows.
As your management company, we work directly with an FHA-VA company that processes all of the documentation we produce. In short, we provide the information and documents that they evaluate and submit for approval.
The process takes an average of five to six weeks, so it is important to start early if you want the benefits that are available. In some areas FHA loans can be obtained up to $800,000. The maximum VA loan is currently $510,000. Both limits increase annually.
Benefits of FHA approval include:
- Given that approximately 60% of first time buyers use FHA loans, the number of potential buyers for any one condominium will increase substantially if the community is FHA approved. This results in faster sales regardless of the housing market.
- The increased number of potential buyers means increased demand which means higher selling prices. Many appraisers estimate that FHA approval results in increased values of 3% to 5% which means thousands of dollars when you sell or refinance your condominium.
- FHA approved usually results in fewer tenants and more owner occupants.
- Those that refinance using an FHA loan like the fact that FHA loans are assumable by a buyer.
Benefits of VA approval include:
- Like FHA approvals, VA approval increases the number of potential buyers for any condominium, resulting is faster sales and higher values regardless of market conditions.
- VA loans are assumable by a buyer who is VA eligible.
Boards should remember that they have a duty to do what is in the best interest of their association’s members. This includes doing everything reasonable to increase the value of the homes in the community.
Please let us know if we can assist your association in obtaining FHA and VA approvals. The cost is low compared to the value received.