Financing for condominiums….the challenges

Many of my customers are experiencing problems with obtaining financing for condominiums. So I wanted to share some information from the lenders I work with.

You can check for approved condominiums on two websites:
https://www.efanniemae.com/sf/refmaterials/approvedprojects/
https://entp.hud.gov/idapp/html/condlook.cfm 

My loan officer at Chase: Unless the condo is Fannie Mae approved & the investor ratio is less than 25%, they cannot finance.  Cash or seller backed financing may be the only way to go for them.

From my contact at BOA, the following information is straight from their policy and procedures manual.  It is very specific as to what qualifies and what doesn't. 

For attached non-owner occupied subject properties only, at least 51% of the total units in the project must have either been sold or must be under contract to be sold to owner-occupied primary residences or second home purchasers.

· All units, common areas and facilities in the project are 100% completed, and the project is not subject to additional phasing or annexation.

· Unit purchasers have control of the HOA.

· The HOA operating budget must be reviewed to determine that it is adequate and provides for the funding of replacement reserves for capital expenditures and deferred maintenance (at least 10% of the budget), and provides adequate funding for insurance deductible amounts

· No more than 15% of the total units in the project may be more than 30 days or more past due on the payment of their HOA dues.

· The individual units should be separately metered. If they are not, the project’s plans should provide for the ready adoption of unit metering

· No single entity (the same individual, investor group, partnership or corporation) owns more than 10% of the total units in the project.

· The units are owned fee simple, unless the Bank of America CID has approved the use of leasehold estates in the project.

· Evidence of the required insurance coverage must be obtained.

 The following are Ineligible Condominium Projects:
· Condominium Hotels – no exceptions allowed
· Timeshare or segmented ownership projects.
· Houseboat projects.
· Condominium projects that represent a legal, but nonconforming use of land if the zoning regulations prohibit rebuilding the improvements to current density in the event of their partial or full destruction.
· Projects where the HOA fees include meals or health care services.
· Condominium project buildings located in flood zone where the HOA does not carry flood insurance on the building.
· A condominium project (or HOA) that is currently involved in a lawsuit may not be eligible for financing depending upon the nature of the litigation. All condominium projects in litigation must be reviewed by Bank of America Common Interest Development (CID) for acceptability.
· Projects with non-incidental business operations owned or operated by the HOA such as, but not limited to, a restaurant, spa, health club, etc.

It is very frustrating as an agent that these units are well priced and for those that should normally qualify cannot get financing. We will just have to wait for the banks to release the funds and to loosen their restrictions on the projects they will finance.

Windsor Hills – inventory as of Sept 29, 2009

9 Lots left plus 2 Construction Lots now Available.

196-199 (open – select your floorplan north facing pool)

162-166 (Brentwood  south facing pools)

2 Construction Lots (west facing pools)

$385,000 5/5 (starting not inclusive of lot premiums)

Brentwood: $400,000 6/4 (starting not inclusive of lot premiums)

$5,000.00 in closing cost

Contact us if you would like additional information.

U.S. product safety agency pledges swift probe of Chinese drywall

WASHINGTON – Sept. 24, 2009 – Under fire for the pace of her agency’s investigation, the top U.S. consumer safety official is promising to move swiftly to investigate a flood of complaints about suspect drywall imported from China.
Homeowners, mostly in the Southeast region, say the drywall is making them sick and corroding wiring throughout their homes. Lawmakers from Florida, Louisiana and elsewhere have pressed Consumer Product Safety Commission Chairman Inez Tenenbaum for answers about the safety of the drywall.
Tenenbaum, who took over the agency in June, told lawmakers the investigation is “extremely complex, and there probably will not be a quick fix,” but she pledged to get to the bottom of the matter.
The release of results from CPSC testing of homes in southern states has been delayed several times and still is weeks away.
Homeowners blame the drywall for a “rotten egg” smell in their homes, health woes such as itchy eyes and skin, difficulty breathing, persistent coughing and bloody noses as well as corrosion of electrical wiring and home appliances.
Democratic Rep. Robert Wexler, one of several lawmakers who met with Tenenbaum on Wednesday, said he was satisfied that the CPSC chief understands the issue’s importance to affected residents.
“If we get these results and they’re valid, and they are then part of a long-term action plan to bring relief to homeowners, then I believe we will have accomplished something very important,” Wexler said in an interview.
This summer, the commission promised to release in September the initial results from indoor air testing of 50 homes; that deadline was then pushed to October. This week, the agency further delayed the release to early November.
In a terse letter to Tenenbaum on Tuesday, Democratic Sen. Mark Warner complained that the agency is moving too slowly.
“This is not acceptable,” Warner wrote. “My constituents have had their lives turned upside down by Chinese drywall: Most have moved out of their homes, and several are facing the prospect of having to foreclose on their homes.”
Since late last year, the agency has received more than 1,300 complaints from residents in 26 states and the District of Columbia, with the majority from Florida and Louisiana. The drywall was imported primarily between 2004 and 2008 when home construction was booming and supplies tight. The plasterboard from China also was used in homes rebuilt after the disastrous Hurricane Katrina in 2005.
The Environmental Protection Agency has conducted tests on a tiny sampling of Chinese-made drywall. It found sulfur and two organic compounds associated with acrylic paint, which were not found in the U.S.-manufactured samples that were tested.
The report did not draw any conclusions about health risks or whether the drywall could be damaging wiring in homes.
The EPA and Centers for Disease Control and Prevention is working with commission, which is leading the investigation.
Copyright © 2009 Associated Press, Jennifer C. Kerr. All rights reserved.

“MEET ME IN THE STAIRWELL” – do not forget 9/11

You say you will never forget where you were when you heard the news On September 11, 2001. Neither will I.

I was on the 110th floor in a smoke filled room with a man who called his wife to say 'Good-Bye.' I held his fingers steady as he dialed. I gave him the peace to say, 'Honey, I am not going t o make it, but it

is OK..I am ready to go.'  I was with his wife when he called as she fed breakfast to their children. I held her up as she tried to understand his words and as she realized he wasn't coming home that night. I was in the stairwell of the 23rd floor when a woman cried out to Me for help. 'I have been

knocking on the door of your heart for 50 years!' I said.  'Of course I will show you the way home - only believe in Me now.' I was at the base of the building with the Priest ministering to the injured and devastated souls.

I took him home to tend to his Flock in Heaven. He heard my voice and answered.
I was on all four of those planes, in every seat, with every prayer. I was with the crew as they were overtaken. I was in the very hearts of the believers there, comforting and assuring them that their

faith has saved them. I was in Texas , Virginia , California , Michigan , Afghanistan.
I was standing next to you when you heard the terrible news. Did you sense Me?
I want you to know that I saw every face. I knew every name - though not all know Me.

Some met Me for the first time on the 86th floor. Some sought Me with their last breath.

Some couldn't hear Me calling to them through the smoke and flames; 'Come to Me... this way... take my hand.' Some chose, for the final time, to ignore Me. But, I was there.
I did not place you in the Tower that day. You may not know why, but I do. However, if you were

there in that explosive moment in time, would you have reached for Me?
Sept. 11, 2001, was not the end of the journey for you. But someday your journey will end. And I will be there for you as well. Seek Me now while I may be found. Then, at any moment, you know you are 'ready to go.'

I will l be in the stairwell of your final moments. God During the next 60 seconds, stop whatever you are doing, and take this opportunity. (Literally it is only 1 minute.) All you have to do is the following:

Stop and think and appreciate God's power in your life, for doing what you know is pleasing to Him.

Source: Not sure..our pastor read this to us last year in church.

Chinese Drywall Pictures

Chinese/Defective Drywall: During the time Florida was experiencing building material shortages, some homes were built or renovated using defective drywall imported from or manufactured in China. Defective drywall reportedly emits levels of sulfur, methane and/or other volatile organic compounds that cause corrosion of air conditioner and refrigerator coils, copper tubing, electrical wiring, computer wiring and other household items as well as create noxious odors which may also pose health risks.

These pictures are courtesy of a home inspector that were recently found in a Central Florida Home.

 

Hunters Creek Stats as of September 1, 2009

Hunter’s Creek offers a combination of condominiums, townhomes and single family homes.  Here is a brief snapshot of the current state of the market:

As of September 1, 2009 :
There are currently 201 HOMES for Sale listed in our MLS system ranging from $67,900 for a 2 bed/2 bath in Sky Lake to $590,000 for a 4 bedroom/3.5 bathroom home in Hunters Creek on Lake Calabay.

There are 100 Condominiums/Towhomes for Sale in the MLS ranging from $33,900 for a 1 bed/1 bath in Palms Villa Residences to $254,000 for a 4 bedroom/3 bathroom townhome in Chartres Gardens
ACTIVE: HOMES 
201  Total: 99 are pre-foreclosure/short sales/bank-owned  (making up 50% of the inventory).
ACTIVE: CONDOMINIUMS/TOWNHOMES  
100  Total:  62 are pre-foreclosure/short sales/bank-owned  (making up 62% of the inventory).

PENDING: HOMES 
178 Total:  111 are pre-foreclosure/short sales/bank-owned  (making up 62% of the inventory). 
PENDING: CONDOMINIUMS/TOWNHOMES  
90 Total:  70 are pre-foreclosure/short sales/bank-owned  (making up 78% of the inventory).

SOLD: HOMES (last 30 DAYS)  
52 Total:  31 are pre-foreclosure/short sales/bank-owned  (making up 60% of the inventory). 
SOLD: CONDOMINIUMS/TOWNHOMES  
32 Total: 26 are pre-foreclosure/short sales/bank-owned  (making up 81% of the inventory).

I will continue this on a monthly basis in the hopes it will provide you in a brief snapshot of the market.

If you would like a Market Analysis for your home, please contact us directly.

We look forward to serving you.

Windermere Stats as of September 1, 2009

Windermere is located in Southwest Orlando and nestled between numerous large lakes that form the Butler Chain of Lakes. Windermere was established in 1889 and works hard to maintain that small town feel. For instance, many local streets are still dirt roads. Windermere has expanded to include newer subdivisions such as Lakes of Windermere, Keene’s Pointe, Summerport, and Glenmuir. Below is a snapshot of the current state of the market in Windermere.

As of September 1, 2009 there are currently 586 properties listed in the MLS ranging in price from a two bedroom/two bathroom condominium in The Lakes of Windermere at $90,000 (Short Sale) to $12.5 Million estate home in Islesworth that is 9 bedrooms/9 bathrooms over 10,000 square feet. Here is the breakdown:

ACTIVE = 586:  108 are pre-foreclosure/short sales/bank-owned (making up 19% of the inventory).
HOME 
531  TOTAL: 77 are pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
55 TOTAL: 31 are pre-foreclosure/short sales/bank-owned

PENDING = 197: 117 are pre-foreclosure/short sales/bank-owned, making up 60% of the pending inventory.
HOMES
151 TOTAL: 91 are pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
46 TOTAL: 26 are pre-foreclosure/short sales/bank-owned

SOLD (August 2nd to September 1st)= 50: 27 are pre-foreclosure/short sales/bank-owned, making up 54% of the pending inventory.
HOMES
42 TOTAL: 25 pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
8 TOTAL: 2 are pre-foreclosure/short sales/bank-owned

If you would like a Market Analysis for your home, please contact us directly.

We look forward to serving you.

Celebration Stats as of September 1, 2009

Celebration offers a combination of condominiums, townhomes and single family homes.  Here is a brief snapshot of the current state of the market here in Celebration.

As of September 1, 2009 there are currently 314 properties listed in our MLS system ranging in price from a one bedroom/one bathroom condominium in Siena at $75,000 (Short Sale) to $3.9 Million for an estate home in Aquila Reserve that is over 8100 square feet.
ACTIVE = 314:  61 are pre-foreclosure/short sales/bank-owned (making up 19% of the inventory).
HOMES
162 TOTAL: 23 are pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
152 TOTAL: 38 are pre-foreclosure/short sales/bank-owned

PENDING = 97: 52 are pre-foreclosure/short sales/bank-owned, making up 53% of the pending inventory.
HOMES
44 TOTAL: 25 are pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
53 TOTAL: 27 are pre-foreclosure/short sales/bank-owned

SOLD (August 2nd to September 1st)= 41: 9 are pre-foreclosure/short sales/bank-owned, making up 22% of the pending inventory.
HOMES
12 TOTAL: 3 pre-foreclosure/short sales/bank-owned  

CONDOMINIUMS/TOWNHOMES
29 TOTAL: 6 are pre-foreclosure/short sales/bank-owned

If you would like a specific Market Analysis for your home, please contact us directly.

We look forward to serving you.

Windsor Hills Availability – Sept 4, 2009

Windsor Hills Reserve is a resort style community unparalleled to any other community in the Orlando/Kissimmee area. Windsor Hills offers: Condominiums, Townhomes (with pools) and Single Family Homes. Some of the magnificent features of this guard-gated community include a luxurious water park pool with fountains, waterslide, spa, toddler pool, tennis and basketball courts, putting green, and a children's playground. Our 10,000 square foot clubhouse, overlooking the pool, offers billiards, video game areas, a sundry shop, fitness room with state of the art equipment, and a high definition surround sound movie theater.
Our most impressive feature is our extraordinary location. Windsor Hills Reserve is the closest vacation home community to Orlando's world famous attractions and theme parks. These Orlando/Kissimmee area attractions have consistently been ranked the #1 family vacation destination in the world.
So, come, relax, and enjoy all that Windsor Hills Reserve has to offer, and you and your guests will be sure to create vacation memories that will last a lifetime!

10 LOTS REMAINING

( Home sites 160,162,163,164,165,166,196,197,198,199 )

$385,000 5/5 SEVILLE or SPENCER

$400,000 6/4 BRENTWOOD

Completion Jan/Feb 2010

$6,000 in CLOSING COST

For pictures or more information, please visit our website.