Did you know that the majority of condo communities in the St. Louis area are not approved for FHA loans?
Years ago, if an HOA (homeowner’s association) for a condo community opted not to go through the process of getting approval for FHA loans, lenders could arrange a spot approval for a single unit so the buyer could purchase with an FHA loan.
But changes to the FHA loan rules eliminated FHA spot approvals years ago.
Most buyers have no idea that they are restricted to a small portion of local condos if they are getting an FHA loan.
When I work with buyers who plan to purchase using an FHA loan, I confirm FHA condo approval before I schedule an appointment to see the condo.
If I am representing the owner who wants to sell a condo, I check to see if FHA loans are allowed before I put it on the market. If they aren’t allowed, I let other agents know in the MLS listing so my clients don’t end up getting an offer from someone who won’t be able to get a loan.
And if FHA loans are allowed, then I make sure to advertise that buyers can use an FHA loan. With so few FHA approved condos available, it would be a big mistake not to let FHA buyers know they should come take a look.
Does your condo community allow FHA loans?
Here is a sample of results for the 63119 zip code.
All of the photos on this page represent condos that I listed for sellers in the last couple of years. None allowed FHA loans.
There are some complexes that do allow FHA loans. When I work with buyers who want an FHA approved condo, I identify complexes where they can purchase and can even send mailings to the complex owners to find them a condo that isn’t already on the market.
If you are ready to buy or sell a condo, the agent you choose really makes a difference.
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