Selling A Condo? Better Hope It's On The 'Approved' List

Question: I own an apartment in a condominium development that I am trying to sell. I have a potential buyer who wants to use an FHA loan because of its low down-payment requirements, but he says my project is not on FHA's "approved" list. That strikes me as somewhat discriminatory, so my question is, does the FHA have such a list? And if it does, how come my condo isn't on it and how does it get on it? Thanks. W.F.

Answer: The Federal Housing Administration does indeed maintain a roster of approved condominium and townhome associations. Because of new rules which went into effect in February, if your development does not appear on the FHA's roster, your potential buyer will not be able to use an FHA-insured mortgage to purchase your unit.

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