How do YOU spell Relief? CONDO relief, that is ...
I'm probably dating myself just a bit when I say I remember the commercial included below well enough to deliberately go hunting for it on YouTube. (And I'm sure current Dallas/Tony Romo fans say, Roger Staubach who?)
Yes ...finally... FHA has revised its rules on Condominium Projects, for the better. Some of the highlights include:
- Remember when no more than 15% of Unit Owners could be 30 days late on their Homeowners Association Dues Payments? Now HUD has relaxed that requirement to 60 days late.
- Investors may now own up to 50% of the total units in an existing building or project, as long as 50% or more of the Units have been sold to owner-occupants ... in other words, existing projects must have 50% owner-occupancy to be eligible.
- New Construction or Rehab Conversions within the last 12 months, require only 30% owner-occupancy to be FHA certified.
- Relaxed, clarified Insurance Requirements are now in play.
- A Greater Percentage of Commercial Space is now allowed within a building: Increased to as much as 35% with case-by-case exceptions up to 50%.
And perhaps the biggest change is the following:
- Less imposing guidelines pertaining to penalties for Homeowners Associations and reporting requirements that ease the concern of volunteer officers of Condominium Associations will now be in place.
In other words, more Condominium Associations should be re-applying for FHA approval if their approval has expired ... and more Condo Associations should apply for approval, if they never have done so before.
The alternative? Conventional Financing, and the Guidelines attached to it. Guidelines dictated by the GSE giants, Fannie Mae and Freddie Mac. THOSE Guidelines remain firm and more restrictive than those offered by FHA. Only the strong, best-positioned Condominium Projects can be financed with Conventional Financing ... a term known as "Warrantable", meaning approvable.
To me, the bottom-line is this ... It's not a perfect world for Condo Sellers, or their Agents. But at least FHA has begun the process to help ease their pain and suffering. They're trying to provide some RELIEF.
My suggestions for Buyers, Sellers, and Agents considering whether to take a Condo listing or presenting an offer for their Buyer? Moving forward, consider this ...
Choose ... or recommend working with a Loan Officer that knows the Condo Financing marketplace. Your decision regarding your Loan Officer could make the difference between a long, painful buying experience ... or a successful Closing. As I have stated in prior posts, this is precisely where my years, knowledge, and expertise gained as a former Appraiser, definitively enhance my grasp and handling of Condominium financing and FHA Condominium Project approvals ... to the great benefit of my clients and Referral Partners. The insight and information gained through my experience, makes my Buyer's, Referral Partners', and my Condo mortgage transactions a much easier, more successful, and fluid process.
Within this challenging segment of the real estate market, no results are guaranteed. But knowing ALL the options available to you is much better gained sooner ... than later.
How do YOU spell Relief? CONDO relief, that is ... as of September 13th, 2012 ... I spell it ... F-H-A Condominium Projects Revisions!
* Thinking of buying a Condominium within Will County or elsewhere in the Chicagoland region? Contact me now! I'll put my mortgage and appraising knowledge, expertise, and experience to work on YOUR behalf ... or your clients'.
I can be reached through any of the following means: