Longwood Gardens Flowers & FHA 203(k) Condo Financing 8/10/11

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Real Estate Agent with Realty Group Referrals 16766

Longwood Gardens Flowers & FHA 203(k) Condo Financing 8/10/11

FHA 203(k) Financing For Condominiums - HUD Guidelines

The Department also permits Section 203(k) mortgages to be used for individual units in condominium projects that have been approved by FHA.

The 203(k) program was not intended to be a project mortgage insurance program, as large scale development has considerably more risk than individual single-family mortgage insurance. Therefore, condominium rehabilitation is subject to the following conditions:

 -   Owner/occupant and qualified non-profit borrowers only; no investors;
 -   Rehabilitation is limited only to the interior of the unit. Mortgage proceeds are not to be used for the rehabilitation of exteriors or other areas which are the responsibility of the condominium association, except for the installation of firewalls in the attic for the unit;
 -   Only the lesser of five units per condominium association, or 25 percent of the total number of units, can be undergoing rehabilitation at any one time;
 -   The maximum mortgage amount cannot exceed 100 percent of after-improved value.

After rehabilitation is complete, the individual buildings within the condominium must not contain more than four units. By law, Section 203(k) can only be used to rehabilitate units in one-to-four unit structures. However, this does not mean that the condominium project, as a whole, can only have four units or that all individual structures must be detached.

Example: A project might consist of six buildings each containing four units, for a total of 24 units in the project and, thus, be eligible for Section 203(k). Likewise, a project could contain a row of more than four attached townhouses and be eligible for Section 203(k) because HUD considers each townhouse as one structure, provided each unit is separated by a 1 1/2 hour firewall (from foundation up to the roof).

Similar to a project with a condominium unit with a mortgage insured under Section 234(c) of the National Housing Act, the condominium project must be approved by HUD prior to the closing of any individual mortgages on the condominium units. 

Longwood Gardens - Dolores and I enjoy frequent visits to Longwood Gardens in Kennett Square, Pennsylvania.  Encompassing more than 1,077 acres, Longwood Gardens is a place of unparalleled beauty, offering dazzling displays that elevate the artistry of horticulture as will as an array of innovative educational programs.  You will enjoy the Gardens and the grand Conservatory. www.LongwoodGardens.org  

Roy and Dolores Kelley visited Longwood Gardens on June 5, 2011. This is one of our favorite destinations. Canon PowerShot G11 camera. Photographs by Roy Kelley.

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Roy and Dolores Kelley Photographs

Roy Kelley and Associates

 

Roy Kelley, Associate Broker

Realty Group Referrals (Retired from RE/MAX Realty Group)

6 Montgomery Village Ave., Suite 200

Gaithersburg, MD 20879

Main Office:  301-258-7757 (You will not reach me at this number)

Send an email message if you need my phone numbers. I will be happy to recommend a real estate professional if you are moving to the area.

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Rainer
238,346
Anne M. Costello
Weidel Realtors - Yardley, PA

Roy: Wonderful photos!

Aug 09, 2011 11:19 PM #1
Rainmaker
846,015
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

Hi Roy nice to see all those beautiful water lilies-some of my favorite flowers. I also offer thanks for the 203K guidelines for condos.

Aug 09, 2011 11:36 PM #2
Rainmaker
3,332,279
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

FHA financing may play a bigger role in our real estate recovery in the near term. Flowers beautiful as usual. Thanks for sharing both.

Aug 09, 2011 11:52 PM #3
Rainmaker
4,432,317
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the photos. Good information for consumers looking to buy a condo.

Aug 10, 2011 12:05 AM #4
Rainmaker
841,108
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Good morning Roy.

This is a nice way to start the day...

Love your photos.

Aug 10, 2011 01:05 AM #5
Rainmaker
2,045,473
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Fort Worth, TX
Selling Homes Changing Lives

Good Morning Roy,

The information you provided took a lot of time to explain but you did a very thorough job of explaining it and I am happy to read it!

Your photos are just lovely and they always start my day off on the right foot!

 

Aug 10, 2011 01:20 AM #6
Rainer
135,808
Kim Delia
Remax Professional Associates - Charlton, MA
Realty Delia Group

Good Morning Roy!!!  Great information today.  Love the photos.

Aug 10, 2011 01:21 AM #7
Rainmaker
433,582
Kristine Ginsberg
Elite Staging and Redesign, LLC - Short Hills, NJ
NJ Home Stager

Roy - you give a wealth of information that will help many people and also bring a smile to all our faces with your beautiful flower photos! Have a great day!

Aug 10, 2011 01:34 AM #8
Ambassador
1,470,975
Toni Weidman
Sailwinds Realty - Trinity, FL
20+ Years Selling Homes in New Port Richey, FL

Excellent information for people who are looking to buy, Roy. And, of course, beautiful photos of beautiful flowers. As I scrolled down, some appeared to be opening up-how did you manage that :)

 

Aug 10, 2011 02:15 AM #9
Rainmaker
5,456,686
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good morning to all and thanks for your comments.  We have another beautiful day in Maryland and home buyers are taking advantage of the attractive prices and the very low mortgage interest rates.

Life is better when there are flowers to photograph!  Toni:  Flowers are magic!

Longwood Gardens. Photograph by Roy Kelley.

Aug 10, 2011 03:20 AM #10
Rainmaker
1,402,493
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

Great post! Very informative in helping buyers understand what they need to know about condo financing, showing that you are the 'go-to' man if you want to buy a condo in the Gaithersburg area.

Aug 10, 2011 03:46 AM #11
Rainmaker
425,238
Larry Atkins
State Wide Realty Co. - Farmville, VA

This is a very informative post! The financing process can be confusing, it's always good to have a little help along the way. Hope you have a great one. Your pictures are beautiful as always.

Aug 10, 2011 04:11 AM #12
Ambassador
1,542,023
William Johnson
Retired - La Jolla, CA
Retired Real Estate Professional

Good Morning Roy, Excellent information on the FHA 203(k) and thank you for putting this together. As always the flowers are stunning. 

Aug 10, 2011 05:27 AM #13
Rainmaker
5,456,686
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good afternoon to all.  Those that wish to use FHA 203(k) financing should identify a loan officer that has experience with the product. 

Life is better when there are flowers to photograph.

Aug 10, 2011 05:52 AM #14
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