You’ve decided to put your condo up for sale, its a good market and you’re ready to sell. You’ve taken the steps to prepare your property, you’ve removed clutter, completed minor touch ups and secured the services of a competent real estate agent.
The condo market is strong in your town; many prospective buyers use conventional loans, however there is a growing market that use alternative mortgage instruments, like FHA mortgages (Federal Housing Administration). You may have discussed, with your Agent, buyers with pre-approvals for FHA loans. If your unit is not HUD (Housing and Urban Development) approved, you may lose out on a pool of buyers. Some first time home buyers take advantage of the lower down payment required by FHA mortgages, making home buying easier. Having your Condo HUD approved does require some documentation and being prepared is a must.
If you want to be prepared, consider collecting the required information. If your condo has no association, you may want to consider the impact on selling in the future. You generally see HUD approved condos in buildings, but there is no limitation on what type of building can be HUD approved. HUD approved condos can be in two units homes (duplexes, 2/3 homes, etc.).
Please be sure to consider all the options available to you and for the buyers interested in your home. If you have any questions or need assistance, contact me.
Special thanks to Meredith Spence, Mortgage Professional – Wells Fargo