East Orange, New Jersey Condominium and Coop Listings for July 2010 were a total of 46 with three under contract during the month.
The month's inventory ran the gamut from studios to three bedroom units, with a price range of $45,000 to $284,000. The average list price was approximately $113,000. There were no closed sales for condominiums or coops during the month, with average days on market hovering around 187.
FHA financing is the premier financing today for most transactions. However, the changes in FHA regulations have made condo financing somewhat challenging in that many complexes that are not FHA approved, have a much more grueling process as a result of MORTGAGEE LETTER 2009-19. Some of the highlights of the mortgagee letter include:
- At least 50% of the units must be owner occupied.
- No more than 15% of the units may be delinquent for more than thirty days with respect to the payment of fees and assessments.
- FHA insurance will be available to only 50% of loans in any Condominium until December 31, 2010, after which this limit will decrease to 30%.
- The condominium's insurance policy must cover 100% of the replacement cost exclusive of the land.
- The condominium must not be a party to litigation, except for that related to the collection of delinquent assessments. However, a request for an exemption for pending litigation will be considered on a case by case basis.
-Once approval is obtained, it is good for two years.
Anyone of the above mentioned could adversely impact your ability to sell or buy a condominium. It would serve the interest of sellers to check with their HOAs with regard to the above mentioned to ascertain what impact the new regulations have on the condominium development.
East Orange, New Jersey Condominium and Coop Listings for July 2010 represented good values for the money. However, if at all possible, going forward conventional financing might provide for easier access to condominium ownership.
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