Here is some additional info about FHA approval:
Pros
1.FHA condo approval dramatically increases the pool of potential buyers. This means that
FHA approved Condos have a larger pool of prospective buyers, therefore increasing competition and demand for the product.
2.FHA Loans are Assumable. This means that in the future an FHA Loan can be assumed (including the interest rate) by a new buyer.
3.Marketability.
This means that some real estate agents won’t show units that are not FHA Approved. Being approved sets your community apart from others in your same area.
Cons
1.New Owner put less down on unit
2.FHA raised MIP to 1.25% which increases debt ratio for new buyer.
3.Need a certified person to get FHA approval which can be expensive.
