Recently we facilitated an FHA condominium project approval. The HOA board of this condominium project was leery of the benefits FHA financing provides for their community. At the request of their HOA president, I wrote the following one page letter:
FHA Financing Enhances Homeowner Value
Availability of FHA financing enhances the value of residential real estate. FHA financing enhances the value of your condominiums by: 1)FHA financing is restricted to owner occupied homes, 2) allow hard working youth to purchase with non-occupant parent co-signers, 3) decreasing of the purchase down payment required 4) allows reverse mortgage refinancing, and, 5) allows reverse mortgage purchase financing.
The HOA board is very much aware of the importance of maintaining a high ratio of owner occupied condominiums. A higher owner occupancy ratio makes it easier to maintain the quality of your community. FHA provides financing only for owner occupied purchase and refinances. An investor cannot use FHA to purchase in your community.
Your community benefits by the quality of your homeowners. Your condominiums have maintained a healthy value. With a minimum down payment, only well paid professionals can qualify for the asking sales prices. Often young professionals lack the down payment or income history to purchase. FHA financing allow young doctors, attorneys, CPAs and scientists to purchase in your community with a non-occupying co-signing parent. Most conventional financing does not allow non-occupant co-signers.
One of the biggest barriers to real estate purchases is the availability of sufficient down payment. The lower the down payment required to purchase your condominium, the larger the number of potential buyers for your condominium. More buyer demand increases the market price of your condominium.
No one likes to see great neighbors with little or no mortgage forced to move because of the financial limitations of fixed income and the rising costs of basic food and health care. The FHA reverse mortgage refinance eliminates mortgage payments and can provide monthly funds—possibly allowing your great neighbor to continue living in the condominium next to you.
What about future neighbors? Your condominiums are surrounded by upscale detached single family residences, SFR. As the population ages, your surrounding neighbors want to continue living in the same fantastic community. However, the detached SFR maintenance requirements become overwhelming. When a detached SFR neighbor sells their current home they may not get enough proceeds from their sale to purchase your condominium for cash. Fortunately, your FHA project approval allows these soon to be great neighbors to purchase a condominium in your community with financing that requires no monthly payments—Reverse Mortgage purchase financing.
You live in a great community. Your FHA project approval will enhance your values; by allowing buyers to purchase with minimal down payments, provide excellent owner occupancy financing, allow young professionals to access non-occupant co-borrowers, allow payment relief through Reverse Mortgage refinancing, and, allow nearby neighbors to stay in the community using Reverse mortgage purchase financing.