Don Edam

Hi Christina,

If they're looking to stay under 200K, they're going to be pretty hard-pressed in finding a 3-4 bed house with 2-car and decent size yard in a good area that is in any type of good condition, unless they are truly able to live more towards that 45min-1hour mark. Farmington may be a good choice to look at as it would be easier to get to Apple Valley and Woodbury from there (but White Bear Lake would be a hike). I have been successful in getting some nice purchases under 200K in Bloomington (East) as well, but you've got to keep your ears open. If they can move up to about $235-$250K, more opportunities closer to the city would be available. Also, if they're willing to do a little fixing up, there are some opportunities for that in the price range in some very nice areas....but if they prefer a newer home, I'm guessing they're looking for move-in-ready. Definitely would be helpful to talk to them to get a list of priorities in their home search in order of preference and see what they are and aren't flexible on. Let me know if we can be of further service.

Thanks!

Don Edam - Wed Oct 29 2008, 14:22

Hi Deb,

It really depends on what area of NE Mpls, Como, or Longfellow you are looking in. You have some areas (especially in NE) that have been hit pretty hard by the amount of foreclosure inventory present that are having prices driven down...while other areas are still very high in buyer demand with not so much inventory coming on the market. It will really come down to narrowing down your area of search and then taking a good hard look at comparable homes to ensure you're getting an accurate representation of home prices that you feel are alike to your current house.

What part of Richfield is your home in? If you are on the West side, closer to Xerxes, homes are in high demand over there right now and you may find that your home is worth more than $220,000. East side of Richfield is still in demand, but does sound closer to your $220K price point.

Let me know if I can be of any help in helping you make your decision, or answer any further questions.

Thanks!

Don Edam
The Don Edam Group - Wed Aug 20 2008, 10:44

Your lender may have already checked this out, but many lenders I've dealt with are not very well versed in FHA loans as they have only made a resurgence within the past year....ask them if they have attempted to get FHA "Spot Approval" on the condo and the complex. We just went through this with a listing of mine, and while it can mean alot of work for the lender and agent, it may be a great way to salvage the deal if it meets certain "special" requirements. Hope all the best for you!! Don - Wed Jul 30 2008, 12:23

Hi Jeff,

Townhomes and Single Family Homes do not need to be on an FHA Approved List to qualify for FHA funding. A condo association (which many "townhomes" actually are) does need to meet certain guidelines. A list of already approved condo associations is here: https://entp.hud.gov/idapp/html/condlook.cfm

If your condo association is not listed on the Approved List, you can attempt to gain "spot approval" (we just got this done on a condo we had listed). The following needs to be true to gain spot approval:

• The condominium project must be complete. There should be no ongoing or anticipated addition of any units, common elements, and/or facilities.

• Control of the common areas of the project must have been turned over to the unit owners association for at least one year.

• The owners association must provide evidence that the project has the appropriate hazard, liability and flood insurance.

• Individual units in the project must be owned in fee simple or be an eligible leasehold interest. The project's legal documents must provide for undivided ownership of common areas by unit owners. By virtue of this ownership, unit owners must have the right to use all facilities and unrestricted common elements.

• The project's documents should not place any legal restrictions on conveyance. Any provisions that seek to limit the free transferability of title is generally unacceptable. Such restrictions include rights of first refusal and restrictive covenants. Certain governmental or nonprofit programs designed to assist in the purchase or rental of low- or moderate-income housing are exempted from the restrictions on conveyance provisions.

• At least 90% of the units in the project must have been sold.

• At least 51% of the units in the project must be owner-occupied.

• No single entity may own more than 10% of the units in a project. "Entity" includes an individual partnership, corporation, limited liability company, limited liability partnership, joint venture, investor group or other natural or legal person qualified to hold an interest in real property. The 10% restriction does not apply when the ownership of less than three units would disqualify an otherwise eligible project.

• HUD recognized that the 10% cap on the number of units that may secure FHA insured mortgages in a given project can place a small regime at a disadvantage, since only a few units will invoke the limit. Accordingly, a two-tiered system was established. For condominium projects having more than 30 units, no more than 10% of the units may have FHA insured loans at any given time. Condominium projects consisting of 30 units or less, can have up to 20% of the units encumbered by FHA insured mortgages under the spot loan rule.

It can get a little confusing :) Let me know if you have any further questions at all and I'd be happy to help! - Thu Jul 24 2008, 06:28

Hi Leslie,

30 minutes from Downtown Minneapolis will really open you up to a number of different areas in the Twin Cities areas. We have a huge relocation packet we can mail out to to you and your fiance that will help you narrow down the communities you may like...it includes the brand new Twin Cities Living Relocation Magazine, descriptions of key neighborhoods, area attractions, etc. Along with that, it can help to begin to looking at a couple of homes from different neighborhoods online to get a good feel at what $350K to $450K can get you in different areas....you can then hit the ground running on 8/9 when you visit. I don't think you'll have too much of a problem finding what you have stated you'd like in a house in your current price range. If you'd like us to send out that Relocation Packet, just let me know the best address to send off to and we'll get it in the mail today. (Don at TheDonEdamGroup dot com). - Thu Jul 17 2008, 11:07