Overall, the Denver housing market showed a 2.5 percent decline last November from November 2009, compared with a 1.6 percent decline for all metro areas. However, there were huge swings. Atlanta showed a 7.9 percent drop and Washington, D.C. was up by 3.5 percent. Nine of the markets – but not Denver – hit their lowest levels since home prices peaked in 2006 and 2006.
What condo is approved and which condo is denied for FHA loans going into 2010?
Here is the break down from Colorado FHA expert Barbra Weade.
Note that the December 7, 2010 expiration date of the condo projects approved prior to 10-1-08 has been extended to staggered dates with the nearest expiration date now December 31, 2010 for all of the oldest projects. See copy of the announcement that came out below that gives the rationale of the new expiration dates and a no-password link to the look-up site for searching FHA approved condos. I was in on the conference call they had and there are some clarifications:
– So long as the case number is issued prior to the project expiration date, the loan may close within the validity period of the case number (provided all of the normal project review info is determined compliant). Indicated that the validity period of the case number is 6 months, but if no activity on the case number in the system within 4 months, will likely remove the case number. So recommend we get them closed within 4 months of ordering the case number OR have some activity of at least logging the appraisal.
– Condo Projects may be recertified within the timeframe of 6 months before to 6 months after the current expiration date of the project (exception of ones already submitted where expiration date is now more than 6 mos away will still be processed).
– HUD’s timing for their direct recertification processing (HRAP) is about 30+ days and may expand with volume and staffing. Note that if the project fully meets all recertification and FHA condo guidelines, and you have a loan in process or prospective loan in process, I can do this internally (DELRAP) within a much lesser timeframe (see info attached). Note that due to the cost and documentation required for the recertfication process this typically works best when the HOA is involved and willing to pay for the recert as a benefit to the project as a whole.
One major totally new item not fully clarified and not yet in writing, but being enforced:
– Condos will be rejected and unacceptable for HUD/FHA approval or recertification if they have any leasing restrictions other than a minimum lease term of 6 months. Stated that this has supposedly always been a requirement from the Housing Act for any property not just condos, but FHA is already now rejecting projects that have any other restrictions on leasing of units and will require an amendment to the documents to be acceptable. This also includes projects that have a limitation on the % of leased units and/or require the approval of the HOA to rent a unit. The written clarification and guidance is to come out in the near future.
Not a change to previous info, but a major item to note:
– Any FHA approved condo project that was initially approved prior to 1-1-2000 will NOT be eligible for recertification, but must be resubmitted for full approval as if never approved by FHA.
Source: BARBARA WEADE
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Home sales continued to rebound in September, increasing 10% compared to the previous month. This builds on August’s gain of 7.6% that followed a large drop caused by the expiration of the federal tax credit in July. Sales are expected to gradually grow as the market moves toward recovery without government stimulus. The recent foreclosure moratorium has opened up opportunities for short sales. Although it could make the near-term “choppy at times,” industry experts expect the overall trend to continue growing slowly.
Seven reason’s to buy a home now!
Recent history has reframed some of what had long been taken for granted about buying a home. Namely, we’ve learned that even though buying a home remains one of the best and safest investments available, a home should not function as an ATM or a short-term speculation strategy. So, where does that leave us? A lot smarter, able to recognize an opportunity when we see one, and aware of the facts that point to now as the prime time to buy a home.
- Home affordability is at an all-time high. The median mortgage payment on the median-priced home, as a percentage of the median household income, is lower than it’s been in a generation.
- Mortgage rates are at rock bottom. It’s hard to imagine interest rates going much lower, and when they start to inch back upward, monthly payments and total loan costs will spike upward.
- Home prices are back on the rise. After declining for 30 months, home prices are trending back upward. The time to get in the market is now.
- Sellers are motivated. This means that buyers have the upper hand. Sellers are fiercely competing among an excess of housing inventory, which often means buyers have untold choices and negotiating power.
- Financing is readily available. Banks are back in the game and ready to lend to well-qualified buyers.
- Owning vs. renting is increasingly favorable. Since 2009, the average principal and interest payment has fallen below the average rental rates, and the gap is now wider than it’s been in the past 22 years.
- Homeownership is still at the core of the American Dream. Owning a home is critical to financial stability and wealth building. It’s a forced savings account, a place to live, and a fabulous tax deduction.
The snow is finally here (real snow) YEAH, the drive from Parker CO today was a great view of the foothills on C-470 west bound. Who is going skiing, has anyone been up to A-Basin yet?
Send me any pictures would love to post them on my site 🙂
If you are interested in searching for mountain homes I have been locating mountain homes for clients for over 10 years.