Let me be very straight with you. The FHA will not accept a "spot approval." If the mortgage broker thinks they will, ask for evidence. Something in writing, or proof that he/she has done it before. I am very skeptical.
The only way you can get this through is to change the by-law, which will likely require a special meeting of the Board, and possibly a vote of the association. In the long run, that would be advantageous to all because FHA loans are not going away, and others will come up against this in the future, preventing them from selling their units too.
The emergency meeting of the Board, and a by-law change has happened and can happen. I know of one that took place recently and it was timely enough for the seller to close the deal. But you will have to convince your board members that it is in everyone's best interest. Get a few neighbors behind you and it might help.
Sorry for the straight talk, but at least there is hope.
Best of luck,
Len is mostly right but as FHA took away the spot approval they also relaxed the right of first refusal, now you can have it as long as it does not contain any discriminatory clauses but the broad does have to go through the process and get the whole complex approved.With my listing I have found that most boards do want to do this because of personal beliefs and mis information and are leaving people who want to sell with only half the market to sell to.Most of these compexes will fill up with rentals not a good situation.
However, FHA is making changes to the Condominium Approval Process. The changes were scheduled to take effective Oct 1, 2009. However, it has been extended to Dec. 7, 2009 (less than 30 days from today - 11/24th.) When the changes go into effect on Dec. 7th, "spot loan" approval process will be eliminated.
You can read the details here ... if you'd like: http://www.disasterhousing.gov/offices/adm/hudclips/letters/
I would agree with Len to ask the buyer's lender to provide in writing of his/her ability to obtain a "spot approval" from FHA due to the impending changes on Dec. 7th.
A test would be his/her ability to obtain and provide you with a "FHA case number" for the buyer's loan. A case number is not a full commitment from FHA, but at least the mortgage broker has discussed and provided FHA with sufficient requirements to obtain a "spot" loan approval.
If your condo project is not FHA approved as of this writing and you need to sell quickly, then I suggest you to consider another buyer.
There are many buyers out there so you should not have a problem in finding another buyer if you've priced well.
Putting that pressure on the current buyer may actually make him decide to go a more conventional route himself. Sometimes, buyers think that while they can afford to put a greater percentage down they shouldn't do so. He may have a much better financial position than you think he does. My selling client's last condo buyer who wanted to do FHA at 3.5% down turned out to be a NYC attorney who was planning on keeping his NY place too as an investment. A simple google of the buyers affiliation revealed more than what he was telling us and he wound up closing with 20% down. Good luck to you.
Whether or not your unit will be approved for FHA financing via the spot approval will depend on your complex meeting FHA's criteria.
Speak with a mortgage broker who handles FHA loans for more detailed information.
Given your situation, I'm sure your agent should be able to speak with the buyers' mortgage broker to lean more.
It might be a long shot but worth taking a minute of your time to find out. Post up what happens or drop me an email firstname.lastname@example.org as I hope everything works out.