Is Your Condo FHA Approved?

As we are beginning to enter the spring selling season. Sellers are beginning to get homes ready to put on the market and buyers are beginnign their searches a little more diilgently. As a majority of all mortgages today are FHA mortgages; is the place you are looking to sell or buy FHA approved? This sounds like a simple question. Most people would say if they are currently living there and there are no "issues" with the house that it would be. Well, on most homes that would be correct. However; what if you own a condo?

Not all condo associations are on the FHA approval list. In fact you have to apply to be eligible for FHA loans. In the past an individual owner of a unit could petition for a spot approval. Well last year that changed. Now, the FHA has made it that either the whole complex is eligble or none. So, how do you know if your complex is FHA approved? Fortunatley there is a website that will provide you with that information. You can visit: https://entp.hud.gov/idapp/html/condlook.cfm

So, what if your condo is not on the approved list and you want to get it on there. There are certain criteria that are needed to get on the FHA approval list. Here is a list of the certification criteria:

1. All units and common elements must be completely built.
2. No single entity can own more than 10 percent or more than one of the units, whichever is greater.

3. At least 50 percent of the units must be owner-occupied.

4. No more than 15 percent of the units can be more than 30 days delinquent on assessments.

5. No more than 25 percent of the total floor area can be used commercially.

6. At least 10 percent of the annual budget must go to reserves.

7. The right of first refusal is OK as long as it isn't used to discriminate.

In addition, associations must submit copies of their budget, insurance policy, declaration and bylaws, plat of survey, any management agreement, analysis of outstanding or pending litigation, and minutes from the last two meetings.

There are two ways you can get your condo FHA certified. One is to wait out for a buyer to come along and have the buyer's lender do the paperwork for you. There is a way for some of the largest lenders to do a direct endorsement for the FHA. You still need all the above criteria and documentation but the process is slightly shorter.

The other way is to petiton HUD. You have to get an applciation filled out and provide all the documentation to them and they will make a descision. If you meet the criteria above I have been told by a HUD representative that they will approve the assocaition and complex for a FHA loan. However;it has to be renewed every year as well now. Just because this year you may qualify next year you may not if you do not meet the same requirements.

So, looking to sell your condo or purchase one....and you need an FHA loan. make sure it is on the list or is eleigible to be approved.

Dave diCecco
Realtor/Broker
www.davedicecco.com

One Million Foreclosures...Is That A Lot?

I just got done reading an article that was talking about that there was one million foreclosures last year in the United States. Is that a lot of homes to be lost? Well it all depends on whether you look at the glass half full or half empty. One million is a very large number. But in retrospect how is that number in comparison to the amount of homes in the United States?

Well the rest of the article mentioned that one in every 45 homes received a notice of foreclosure. That number was roughly 2.9 million households that received a notice. They just fell behind enough that the bank began the process. A lot of families were able to sell their homes through short sales, refinanced, or found better paying jobs that prevented them from foreclosing on their homes.

So, is it as bleak as the report said? Well consider that over 98% of people that own a home in the United States did NOT receive any notice of foreclosure. And out of those 2% of people that did receive a notice of foreclosure less than half of them actually had their home foreclosed on.

So, all in all less than 1% of ALL American homeowners lost their home last year to foreclosure. Yes it is still a daunting number but in relation it is really not that large of a number when you consider the amount of homeowners who did not lose their home to foreclosure.

The news report claims that foreclosures are affecting home values nationwide. But are they really? Consider that foreclosures account for less than 30% of all sales last year in the United States. The home values on these homes is lower than the average home owner is probably looking to sell their home for. But what is the condition of the home? The banks are taking into account the repairs needed to get the home back to the standards the average homeowner is sellign their home for....making that number relative.

Dave diCecco
Realtor/Broker
www.davedicecco.com

brightmoor Subdivison Matthews, NC. Market Report January 2011

Brightmoor Subdivison located in Matthews,NC is a large subdivsion of ranch and two story homes built in the late 90's to early 2000's. Tucked away and conviently located to major shopping schools and highways this subdivsion is ideally situated.

Here are the market trends for the past three years of homes that have sold and what is currently active on the market:

3 years ago there was 17 homes that sold for an average sale price of $221,394. The average days on the market was 41 days.

2 years ago there was 15 homes that sold for an average sale price of $209,087. The average days on the market was 43 days.

Last year there was 8 homes that sold and the they sold for an average of $178,929. The average days on the market was 112.

Currently there are 10 homes actively n the market right now with an average asking price of $220,240. They have been on the market for an average of 137 days.

The signifcant drop in sale price last year was mostly attributed to bank owned homes that hit the market. They were priced aggressively and in need of repairs. They accounted for almost 80% of all sales in there last year.

Dave dicecco
Realtor/Broker
www.davedicecco.com

New Listing: 12534 Shelly Pines Dr. Charlotte, NC. 28262

This 3 bedroom 2.5 bath home with bonus room located in the Mallard creek area of Charlotte is truly a gem of a buy at $129,900. Situated on a corner lot this home has tiled flooring in the foyer and throughout the kitchen and dining area. All the bathrooms are also floored with tile. The living room features new carpet installed less than six months ago. The roof was replaced last year and the fence less than eight months ago.

The open floor plan makes this home show larger than it is. You will truly enjoy the open space this house offers. Convience to major highways and local stores puts this home in an ideal location for commuters. It's close proximity to UNCC and research park make this an affordable option to people working in that area. The spacious 2 car garage has ample room for a work bench area as well as two full size cars.

Come see why Mallard creek area is one of the fastest grwoing areas in Charlotte.

David diCecco
Realtor/Broker
www.davedicecco.com