VERY IMPORTANT CONDO INFO I wanted to give you some information regarding the condo market that will definitely affect us all next year. As of Dec 7,2010 many of the condos that you have been used to being able to get 3.5% down payments, with 50% owner occupancy ratios and a little lee way on the appraisals and credit will be expiring. They MUST get their FHA certification.
NOW.....Here is the situation.....All FHA approved condos prior to 1/1/2000 will NOT be eligible for recertification. They will have to go through the full approval process.
All FHA approved condos after 1/1/2000 are eligible for re certification. The only people that can send certification paperwork to HUD are lenders, homeowners associations, management companies, attorneys and consultants. Being a lender we have a consultant and an Attorney who works on the re-certifications and the full certifications. So call me and I can direct you to the proper people to help or have the association or management companies call me. 5% condos are almost impossible to do! They have to have 70% owner occupancy, perfect buyers and perfect very recent comparables. We work with 5 PMI companies and they are all having trouble with 5% condos, even 10%. Anything that needs PMI can be a real headache and heartbreak. Also both FHA and Fannie Mae are wanting to see 10% of the total budget being put away for reserves on a YEARLY basis. Just because the condo might have a good amount in the bank they still want to see 10% per year going in. The individual condo owner is at the mercy of the whole, so they want to make sure they are healthy well funded projects. So if you have a Condo Listing, if you want to sell condos next year or especially if you own one, start talking about this. This is BIG news in the Condo Market!!! You can even turn this in to an opportunity to get known in a complex and perhaps receive some listings.
Call your local Mortgage Loan Officer for the most up to date information!
Please help to get this IMPORTANT INFO out into our communities.
By: Karin Stocknoff November 17, 2010