Condo FHA approvals extended
Published December 10, 2010 | 
If you are buying or selling a condo, there are rules and regulations on if a buyer can use an FHA loan to purchase a condo. Condo projects have to apply with HUD to get approval per their guidelines. Thousands of approvals were set to expire this week, but HUD announced an extension on the expirations. See the article below by Jocelyn Predovich. There is a link at the end of the article where you can look up a condo area to see if it is FHA approved.
FHA CONDO UPDATE
by Jocelyn Predovich
Condo, Condo, Condo. Important to read this if you:
- Have a listing that is a condo
- Are under contract on a condo
- Have a FHA approved client shopping for a condo
Thousands of condos’ FHA approvals expired on 12/7/2010. An extension just released by HUD.
FHA Condominium Project Approvals Expiration Dates Extended:
FHA announces extension of condominium project approvals with an expiration date of December 7, 2010. Provided below are the extension dates based on five-year time frames with the exception of those condominium projects with original approval dates from 1972 -1985.
Initial Project Approval Dates Current Expiration Date New Expiration Date
1972 – 1980 December 7, 2010 December 31, 2010
1981 – 1985 December 7, 2010 December 31, 2010
1986 – 1990 December 7, 2010 May 31, 2011
1991 – 1995 December 7, 2010 July 31, 2011
1996 – 2000 December 7, 2010 August 31, 2011
2001 – 2005 December 7, 2010 September 30, 2011
2006 – 2008 (Sept) December 7, 2010 March 31, 2011
The extensions were granted to reduce the impact of processing and reviewing the number of project approvals expiring at the same time while recognizing current housing market conditions. Lenders and/or other interested parties are encouraged to begin the re-approval or recertification process as early as possible as it is not anticipated that any further extensions of project approvals will be issued.
The Condominium look-up page and the FHA Connection databases were updated on December 7, 2010 and now reflect the extended expiration dates. The links to the sites are:
Condominium look-up page: https://entp.hud.gov/idapp/html/condlook.cfm
FHA Connection: https://entp.hud.gov/clas/index.cfm
Denver Home Prices Up and Outperforming the National Average
Published December 10, 2010 | Stats from Denver’s Metro List show that prices were up in November 2010 compared to November 2009. In November 2009, the average price of a single family home in the Denver area was $265,498 and in November 2010 was $281,466. Of course, results vary by area, but overall, we are looking up.
At the same time, the Denver Business Journal just published an article about how prices in Denver are outperforming the national average. An excerpt from the article is below and the full article can be seen at http://bizjournals.com/denver/news/2010/12/09/clear-capital.html
Home prices in Denver have outperformed the rest of the nation in recent years, according to a new report on prices nationwide from real estate data provider Clear Capital.
“While current quarterly and yearly price changes indicate Denver is performing similarly to the nation, overall trending from the home pricing run-up to today shows that Denver is clearly outperforming national prices,” says Truckee, Calif.-based Clear Capital in its latest monthly Home Data Index Market Report, issued Thursday.
Denver home prices “avoided the extreme run-up experienced nationwide” since January 2002, and “subsequently fell by much smaller margins [down 29.9 percent] and have recovered more rapidly than the rest of the nation,” the report says.
It says average home prices in the Denver area are now 18.5 percent below their all-time peak of August 2005, half the national price decline of 37 percent over that same period.
Appraiser Reform
Published November 19, 2010 | If you or someone you know bought a home this year, you very likely experienced or heard of someone experiencing a problem with the appraiser. I know I had quite a few problems on several different deals with different lenders and different appraisal companies. The goal in new procedure guidelines was to keep appraisers independent and free of coercion to inflate home values. However, what were Realtors and buyers to do when the appraisal came in low, they couldn’t get a loan, and although they had data that proved the sales price was at market value, no one could contact the appraiser to discuss it. What could a Buyer do when the appraiser obviously did a bad job on the appraiser?
As part of the Wall Street Reform, the Fed wants new regulations for appraisers. The new interim rules are:
The Fed’s interim final rule:
• Prohibits coercion and other similar actions designed to cause appraisers to base the appraised value of properties on factors other than their independent judgment.
• Prohibits appraisers and appraisal management companies hired by lenders from having financial or other interests in the properties or the credit transactions.
• Prohibits creditors from extending credit based on appraisals if they know beforehand of violations involving appraiser coercion or conflicts of interest, unless the creditors determine that the values of the properties are not materially misstated.
• Requires that creditors or settlement service providers that have information about appraiser misconduct file reports with the appropriate state licensing authorities.
• Requires the payment of reasonable and customary compensation to appraisers who are not employees of the creditors or of the appraisal management companies hired by the creditors.
Final new rules will become effective April 1, 2011.
Predictions from Realtor’s Chief Economist
Published November 19, 2010 | Dr. Lawrence Yun, the National Association of Realtor’s chief economist was in Denver this week and offered some insights into what he expects could happen next year: higher interest rates, flat home prices, and a rebound in home sales. His predictions below are a national forecast and not specific to Colorado which he has said in the past is a strong market compared to others in the country.
Yun expects U.S. home sales to reach 5.2 million next year, up from 4.8 million this year and matching the pace of 2000. He also thinks that more jobs in 2011 will increase home sales. His forecast calls for mortgage rates, which briefly approached 4 percent, to return to 5 percent next year and 5.9 percent in 2012 as inflationary pressures build in the economy.
Although some analysts worry about the foreclosure shadow market, Yun believes that we are entering a stable, “virtuous” housing cycle.
Posted in Advice, Buyers, Mortgages, Real Estate, Sellers | 
Housing Predictions, Housing Trends, Mortgage Rates | 
Leave a commentInteresting Loan Qualifying Tidbits
Published November 8, 2010 | We held our first home buyer seminar last Thursday and were all reminded of a few interesting tidbits concerning qualifying for a loan.
Did you know that if you foreclose on your home and only foreclose on the first mortgage, but continue to pay off your home equity line of credit, the timetable for you being able to buy a home again has not begun! As long as the line of credit is associated with the property that was foreclosed, the 3 year wait to buy again has not begun. You need to have the lender change the line of credit to an unsecured loan and provide a letter saying such.
There are also a few new caveats for FHA loans. You cannot get an FHA loan on a primary residence if you already have and are planning to keep another property that has an FHA loan. And if you are planning to have a room mate or significant other to help pay the mortgage, that is fine, but you cannot use that “rent” income in order to qualify for the loan.
As far as closing costs required to purchase a home, if you are buying under $200,000, the typical 3% might not be enough. One example was given that on a $55,000 purchase, the closing costs for an FHA loan could be around $4600.
Once again, it is important to talk with a GOOD lender to know your options and situation when buying a home. We will have another Free Home Buyer Seminar on December 2nd. Call 720-470-4397 for information.
Foreclosure Deals
Published September 30, 2010 | Fannie Mae and Freddie Mac are trying to sell off 150,000 foreclosed homes by offering low down payments, no requirement for mortgage insurance, up to 3.5% in closing cost assistance and up to $30,000 added to the mortgage for renovations. Buyers who plan to live in the properties get a 15-day chance to view the homes before investors can purchase them. You must be under contract on a property after September 23rd and close before the end of the year.
For information on Fannie Mae’s program go to: http://www.fanniemae.com/newsreleases/2010/5162.jhtml?p=Media&s=News+Releases. Search for the properties available for the program at: http://www.homepath.com/. Check this site regularly since new listings come on the market regularly. Or have your Realtor stay on top of it for you!
For more information on Freddie Mac’s program go to: http://www.homesteps.com/smart_buy.htm and search for homes at http://www.homesteps.com/hm01_1featuresearch.htm.
Where are the Foreclosures?
Published September 20, 2010 | You hear it all the time – people are losing there jobs and losing their homes. But then I have buyers ask me – where are all the foreclosures? It appears there are two things going on with foreclosures. The first is that banks seem to be helping homeowners with mortgage modifications and with processing short sales more quickly. The second is that banks are holding onto foreclosures and slowly releasing them to the market so not to cause another market crash. However, this will keep prices low and delay home appreciation.
If you are looking to buy a foreclosure, work closely with your Realtor to keep an eye on the market and jump on the good deals. If a house in your neighborhood has been foreclosed, it might be while before you get a new neighbor.
5 Reasons To Buy a Home Now
Published September 8, 2010 | It is still a GREAT time to buy a home.
Prices are Still Low.
Prices are still relatively low. Multiple studies have declared that Denver will be one of the first cities to come out of the recession. When that happens, home prices will start to go up. Although there is no guarantee when prices will go up, experts seem to agree that prices have bottomed out and we will start to see an increase soon. We started to see prices go up this spring because of the tax credit creating such a demand, but things have slowed and buyers can now offer less than asking price instead of more than asking price like we saw earlier this year!
Interest Rates are Unbelievable!
No one thought interest rates would decrease this year, but they have! Buyers should not in all good conscience pass up these rates!
Sellers Are Still Agreeable to Paying Your Closing Costs.
It is still a buyer’s market so buyers can still ask sellers to pay up to 3% of buyer’s closing costs. You can save thousands!
More Time to Find the Right One
This spring was crazy for buyers. If you found the right home, you had to make an offer that minute before someone else came in and took it. The tax credit created such a demand! Now things have slowed a little so you can probably take a day or two to think over the property before you commit to it. Now you can be sure it is the right home for you.
Low Mortgage Rates Beat Tax Credit Incentive
Someone taking out a $240,000 mortgage today at a 4.42 percent interest rate could save $33,287 in interest costs over the life of a 30-year loan. That’s four times the $8,000 credit used by a first-time homebuyer who financed at 5.21 percent in early April.
Inspection Check List
Published August 23, 2010 | The inspection is one of the most important steps in buying a home. It is the best time for you to take a good look at what you are buying and to decide if you really want the house – it is the easiest step in the process to back out of the contract and get your earnest money back.
Inspection Tips:
1. Hire a professional inspector – not just your father or friend of the family.
2. Consider getting a radon test especially if there is a basement that you plan to spend time in. Radon can cause cancer. If radon levels are too high, you can ask the seller to put in a mitigation system that would cast $1,000-$1,500. If your test comes back high, it is in the seller’s best interest to put in a mitigation system because chances are any buyer will ask for it.
3. The inspector will look at the structural, electrical, and plumbing in the house. Things to make sure the inspector checks: outlets, any included appliances, furnace, cooling system, hot water heater, gas leaks, foundation cracks, roof, all faucets and pipes, electrical panel to code. I highly recommend you follow the inspector to learn what he is looking for and learn homeowner tips. Be sure to get a copy of his report after the inspection.
4. Things you should check while you are there with the inspector – do windows and doors close? Are the screens on the windows? Check carpet and tiles for damage, look at the ceiling for signs of water damage, take measurements.
Remember, it is the inspector’s job to find things that are wrong with the house. It is your job to decide what you need to have fixed and what you can live with, or if you want to walk away from the deal.
The Importance of a Good Lender
Published August 16, 2010 | Buying a home can be fun and exciting, but it is also serious business. It is easy to look at homes and write an offer on one, but you have to get a loan and there are many ways that can get screwed up. It is important to work with a good lender. Talk with your Realtor, friends, and family and make sure the lender you chose will get the deal closed.
A Good Lender:
1. Will review your income, debt, and credit score and be honest with you about the realities of qualifying for a loan.
2. Will review all types of loan products and discuss each option with you to determine the best loan for you.
3. Is responsive and will return your phone calls and the phone calls from your Realtor and title company too.
4. Understands the urgency in meeting deadlines and troubleshooting problems. A good lender will not sit on a problem and will be diligent about solving problems.
5. Pursues options and does not give up when a loan application comes to a dead end.
6. Reviews the HUD-1 with you to make sure you understand all fees associated with closing.