FHA And VA Approval Is Coming Back For Condos!

During the 2008-2009 downturn in the economy, a lot of condo HOAs lost their FHA and VA approval.  This was due primarily when condo owners got behind on paying their HOA dues or there were too many units being rented instead of owner occupied.  The FHA and VA decided issuing loans to buyers for properties in these neighborhoods was too risky.  This really hurt condo values since only buyers using conventional loans or able to pay all cash could purchase these properties.

Well it has been 10 years since the end of our last recession.  If you see a property you really like and the seller’s agent says you can’t use an FHA or VA loan, double check to make sure this is accurate.  It could be that the seller just doesn’t want the extra hassle of dealing with a buyer using a government backed loan.  But, often the seller’s agent just assumed these loans are not approved because it has been that way for so long for that property.  The FHA and VA constantly review neighborhoods and literally every week they give back their loan approval to select areas.  It is great to see the damage from the 2008-2009 recession slowly getting reversed.