By my guesstimate 90% of the current buyers are using FHA financing, they only need a 3.5% down payment and the rates are great.  What does this mean for you townhouse/condo sellers?  You need to be FHA approved.  But no worries if you aren’t it can be done, with not much work. 

1.  Are you legally a condo or not?  Check your legal description, if you are categorized as a condominium or has CIC in the legal description you are legally a condo.  Beware, you may look like a townhouse but are legally a condo.  If you are a townhouse no need to go any further, you can accept an FHA buyer.  If you are a condo move on to step 2.

2.  Check the HUD website and search to see if your development is listed as already FHA approved.  I would search by zip code, then look for your development.  If you don’t see it, call your management company they may know.  If you are not FHA approved move on to Step 3.

3.  Start the FHA approval process, this may require assistance from your board.  My husband and I did this for our own association and once we sent in all the paperwork we were approved in 2-3 weeks!  Yes there is a little work involved but nothing painful.

Have any questions give me a call.  Remember though if your development is not FHA approved your buyer will need to have 10-20% down payment for conventional financing or pay cash.  You potentially are missing out on about 90% of the buyers and your values will suffer.