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What % of buyers looking at townhomes require FHA financing?

In your direct experience, what percentage of buyers looking at condos/townhomes are dependent on FHA financing?

Have you seen a correlation between condo/townhome sales in your area and FHA approval?
  • April 28 2012 - US
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Answers (6)

Profile picture for bertogambo
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  • November 13 2012
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I'm not sure of what percentage of buyers looking at townhomes require FHA financing. The problem is whether or not the development is FHA approved. When a percentage of homeowners in a development are delinquent on their HOA fees, FHA can kick that development off the approval list.

  • April 28 2012
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Profile picture for user665909
As I'm sure you're aware, most complexes across the country lost their FHA approval last year, but I'm not sure how many even know it.  I'm trying to build a case that I can show my association that townhome sales are directly related to FHA approval, and the value of all the homes in the complex are negatively impacted because we are no longer FHA approved.
  • April 28 2012
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Profile picture for Ofe Polack
Most buyers tend to use the lending program that offers them the best terms and at the moment FHA offers the lowest rate 3.5%, of course there is VA and USDA Rural Development but the elligibility is more restricted.  The situation with condos is that in order to use FHA the condo has to be FHA approved and some are not.
  • April 28 2012
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It's hard to say but I'd put it at around 25-50% for all condos (including townhomes). The trick is getting the complex FHA approved.
  • April 28 2012
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Hello, I don't think anyone is going to have specific numbers for you here... but if they did i would love to see them. In CT where even a townhome or condo is most likely over 100k there are larger percentages of FHA buyers. Also because many first time buyers are attracted to the limited maintenance and responsibility of condo ownership, combined with the fact that FHA is more forgiving on credit scoring and counts more income towards mortgage payments you have a lot reasons why condo buyers are often both first time buyers and FHA financed. My gut feeling is it might be as high as 2 out of 3 are FHA... You might find some statistical data on other sites like Realquest. Good Luck!
  • April 28 2012
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