 A large portion of home buyers are first time home buyers. Because of either their lack of credit or lower income they have a hard time finding financing or getting a condo approval. Traditional loans have more requirements than loans from FHA. Without being HUD certified you could be missing out on those potential homebuyers that only qualify for FHA financing.
FHA Loans
The FHA doesn’t actually lend any money; the program is to ensure loans for home or condo approval. Lenders that are established and qualified are able to approve those that would otherwise be unable to afford a home or get the financing they need with the backing of the FHA. Conventional underwriting has many more requirements than that of the FHA programs. Because of the insurance of the FHA lenders are encouraged to approve loans for those who otherwise wouldn’t qualify. Condominiums must be HUD certified in order for those who qualify for condo approval FHA financing to purchase them.
There are also other benefits to those that qualify. These loans just don’t allow lenders to approve to those less qualified traditionally.
Some Benefits Include:
- Flexible income requirements
- Down payment assistance
- Lower credit score requirements.
Because you are increasing the number of potential buyers this has the potential to help sustain the market value, which I’m sure is important to your current homeowners. Without the help of the FHA many people would not be able to purchase homes or get a condo approval loan. There are more of these people than you may think. Missing out this key demographic could be detrimental to your community.
We Can Help You Get HUD Certified
Before allowing those that qualify for FHA financing to consider purchasing a home in your community you must first become HUD certified. If you didn’t recertify last year when HUD made the changes it is highly likely that you are no longer on the HUD approved list. We need to get started as soon as possible.
The process to become certified can take some time. You don’t want to wait until it’s too late to recertify.
A Big Change is No Longer Allowing Spot Approvals
Spot approvals were possible before HUD made these changes. A spot approval was HUD approval on an as needed basis. The entire condominium community did not need to be HUD certified for a condo approval loan. This option is no longer available. Many communities were left scrambling to get certified so they could keep appealing to more prospective home buyers.
Without being HUD certified people that are unable to be approved for conventional loans or to get a condo approval loan won’t even be able to look at homes or condos for sale in your community. Without being HUD certified you are missing out on a huge demographic of potential homebuyers. This could cause all sorts of damage to your community. You could lose out on out a lot of potential homebuyers.
If your condo community only accepts traditional financing that could affect the market value of homes in your community. It is important to appeal to every home buyer you can. Because of the affordability of FHA loans more people are becoming home owners. FHA loans appeal to a wide variety of buyers because they are easier to obtain.
Other Changes
You must recertify every two years now. You don’t want to let your community fall off the HUD home or condo approval list and that is what happens if you fail to recertify. This means less potential home buyers. This affects everyone; the community, current owners and potential buyers.
In the year 2010 HUD required a mandatory recertification. Did you get recertified? If not, let us help you get certified as soon as possible. We have the experience to help you. Our 30 years of combined experience working with HUD can assist you to get certified.
These changes have affected every condominium community. It’s important to get and stay certified to take advantage of more potential home buyers. This can help your community sustain current market values. |
