Team Tudisco helps you navigate the waters of FHA and HOA’s.
There is certainly nothing wrong with living in a community with homeowners associations dues. One of the largest perks is maintenance free living and sometimes clubhouses, fitness facility’s or even golf courses. The flip side is you need to understand that when your neighbors don’t pay their association dues it can negatively affect you. Here’s how:
So your neighbors aren’t paying their monthly dues and you think that is their problem. Well it is until you want to sell your home. If your community has a delinquency rate higher than 15% not even a conventional loan will get approved for your community. Yes you guessed it you are eliminating a group of potential buyers. If your community is FHA approved their guidelines have some flexibility but you could be looking at only cash buyers if you don’t have FHA approval. At that point you would be limited to cash only buyers. This usually means an investor and that will result in a plummet of home values because you only have one pool , the cash pool. Not to throw in another monkey wrench but most of the investors will want to buy the homes to rent it out. If your community doesn’t allow rentals you have yet another issue. When this happens values plummet.
When buying your home ask these questions;
1. Is the community FHA approved?
2. Does the management have long term plans to maintain their FHA approved status if they have one?
3. Policy for going after delinquent fees from homeowners i.e. will they pursue foreclosure if need be?
If you already live in a community get active with your board. Often times lack of participation by homeowners is a big issue since no one is keeping watch.
Nicole and Tony Tudisco