Many Seattle Condos Let FHA Approval Lapse
Thanks to Jim Patterson at Windermere for the idea to write the post and for all the background info!
Jim Patterson, an agent at Windermere, recently wrote us because he was surprised that no one was talking about the fact that many condos have let their FHA approval expire.
What does it mean?
For buyers, it means if you’re using FHA financing, likely because you only need to be 3.5% down, then you won’t be able to buy a condo in a building that is not FHA approved.
For sellers, it means that not as many buyers can buy your building. You might not care because it is a hot market but when things slow down you’re going to want to ensure all qualified buyers can buy your condo.
Sample of Seattle condos that are not currently approved for FHA buyers:
- 1111 Pike
- Veer Lofts
- The Vine
If you’re curious about a building’s status check out the HUD’s FHA condo search page. The site lists the FHA approval history for each condo as well.
Jim got his condo building’s FHA approval renewed without issue, but his HOA had to re-apply 4 months before it was set to expire.