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Old Forge Crossing tightens up investor ownership ratios

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Real Estate Agent with Realty ONE Group Advocates 484-237-2055 PA License - AB067198

Over the years Old Forge Crossing has been relatively lenient towards investors, allowing owners who got transferred through work to rent their units easily. With the donwturn in the husing market and the need for condo complexes to be FHA approved, the levels of investor ownership has become a issue not just at Old Forge Crossing but at several local townhome and condo developments.

At the moment the ownership by investors in Old Forge Crossing is 38% and has never exceeded 40% however a recent change in the by laws will prevent the ratio of homeowners to investors going above 50%. So whilst their is no imminent danger of hitting the ratio limit it is something to be aware of as FHA loans and many of the banks who offer these loans demand a ratio of 50% or below for investor ownership in condo complexes.

Old Forge crossing

Sales have been brisk with only one or two units remaining available for buyers to consider right now, there are several pending sales, however prices have been under pressure as there have been several distressed properties that have sold and these have affected prices for other sellers within the community, as a result appraisals have been a little tougher when upgraded and rehabbed units have come on the market as the comparable supporting sales are not there. Once again some of this is due to the stricter levels from the banks on appraisals and what they allow the appraisers to increase value for work done improving a condo that is for sale.

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Nick Vandekar
Nick is a Tredyffrin Easttown Residential and Commercial REALTOR selling The Main Line, Chester, Delaware and Montgomery Counties.

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Comments(1)

John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

Nice post, I wish HUD could just get rid of that guideline for FHA qualification instead of requiring condos to change their rules, would make life a lot easier.  There are too many unknown reasons as to why a condo can have a high ratio.  Probably smart of the condo to keep the doors open to FHA buyers!

Sep 12, 2013 06:41 AM