A recent article in the Seattle Times, discussing buyer’s challenges with loan guideline changes, reminded me of the importance of HOA and condo buildings doing their best to stay viable and eligible for FHA, VA and Fannie Mae approvals not only for buyers in the market, but also for condo owners who might want or need to refinance. In light of stricter lending guidelines, and frankly the sheer cost of buying a condo in our very expensive Seattle condo market, there are three key things condo owners should be encouraging their HOAs to consider and stay on top off.
- FHA Approval for the condo building
- VA Approval for the condo building
- FNMA (Fannie Mae) approval for the condo building
Read on to learn why these important condo building approvals might help preserve values in condo buildings, in any condo market.
Now first off, not all condo buildings will be eligible, regardless of how on top of it the HOA might be. But, in all three cases, the key thing I’d like to get on my soap box about and offer recommendations on, is that HOAs and property managers attempt to keep any current eligibilities active. Renew them on time! If your condo building is already FHA approved, and already a FNMA approved condo project, keep it active. Renewals are much easier than the initial approval process. Also, because guidelines can change from time to time, once you let your approval expire, it might not be even possible to get it again if something has changed that affects your building’s eligibility.