The Denver Post report on Sunday 1/22/12 that only 1/3 of all condo developments in Denver are FHA approved. These developments have to gain FHA approval every 2 years. Having FHA approval means that buyers who need FHA loans can buy in these projects. Many condo developments are unable to get FHA approval because they have a lawsuit pending, over 15% delinquency in HOA dues, or more than half the units are non-owner occupied (investment properties).
This is a huge problem because many people who buy these condos need FHA mortgages and when you limit the supply of buyers prices drop. 75% of buyers under $200,000 us FHA loans. Homeowners need to pressure their HOA to get FHA approval and keep it current. Real Estate Agents need to properly represent the complex and its status. To check your complex’s status go to the HUD website and go to the Resources tab. Here it is:
Call with questions at 720.203.9624 or look us up online at www.BevGrothProperties.com