Westchester County Cloud 9 Homes Blog

I love having FHA Approved buildings! Why is it that we do not have enough condominium approved buildings for FHA financing in Westchester County? Isn't it an easy process for buildings to apply for FHA Financing? My banker told me as long as the Condominium Association completes the application they would definitely get FHA approval. Banks are offering great interest rates/real estate prices are at a all time low - as long as you have good to great credit why arent more condominiums get FHA approved?

Working as a professional in the mortgage industry for 12 years I can't seem to get many Westchester condominiums approved for FHA financing. The problem with getting the FHA approvals is getting through to the management companies handling the particular buildings. I have tried to educate the management offices on Real Estate in today's market. Most young people starting out in our world today DO NOT have 20% down plus closing costs to purchase a home. The same goes for those who have lived in a home for 30 years and now want to downsize, and might be selling their home at a much lower price than expected. Some, maybe taking a major loss. That's why 96.5% FHA financing should be available to them. We halt at the approvals on Coop/Condominiums at the buildings management or committee boards on these types of properties. What management offices or committee boards DO NOT get is they are de-valuing these types of properties. Especially in today's market, sellers have a very hard time with less qualified buyers coming through, and buyers either can't afford the 20% down, or wonder if they do buy, how hard it might be to sell when they eventually want to move to a larger home. FHA financing could and should be allowed on any home purchase. The government has backed FHA financing for a reason. It does come with the price of the monthly PMI for protection that people may default on their mortgage. I can tell you most defaults today are not from FHA financing alone. It is a very simple process for banks to approve FHA financing on these types of properties, with the help of the management offices and or committee boards. I will end with saying it is a shame that not all home purchases are allowed under FHA financing, which is shattering the American dream for anyone who would like to purchase a home but don’t have the funds to do so.