What are the benefits of
FHA condo approval?


FHA condo approval dramatically increases the pool of potential buyersStatistics show that approximately 60% of new home buyers intend to use an FHA Loan. If your community does not have FHA condo approval, you potentially limit the buying pool to only 40% of home buyers.

NOTE: These are “regular” buyers – an FHA loan is not associated with low income HUD programs, such as Section 8. In some counties, an FHA insured loan can reach amounts of $800,000.00 or more. Since the recession, most American buyers are using FHA insured loans, and this will be the trend for years to come.


Increased Home ValueFHA approved condos have a larger pool of prospective buyers, therefore increasing competition and demand for the product. This can result in higher purchase prices and an increase in market value. This will increase the value of units throughout the community.

FHA Loans are Assumable
This means that in the future an FHA Loan can be assumed (including the interest rate) by a new buyer. With interest rates at an all-time low, this can be a very valuable asset to an HOA community.

Some real estate agents won’t show units that aren’t FHA approved. Being approved sets your community apart from others in your same area.

Going through the FHA condo approval process gives your Homeowners the sense that you as a Board cares about the community and wants it to thrive.

Less Renters in the Community
Generally speaking, Buyers who use FHA loans are more likely to reside in the unit, and not rent it out. Conversely, communities without FHA approval will attract buyers that can make large down payments. These buyers are usually investors who will rent the property for a profit.

Fiduciary Duty
Board Members and Property Managers are expected to maintain property values in their communities. Several HOA attorneys advice that it is the fiduciary duty of the condo Board to apply for FHA condo approval to maintain or increase property values for residents.