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Financing in Waterbury : Real Estate Advice

  • All162
  • Local Info28
  • Home Buying46
  • Home Selling2
  • Market Conditions9

Activity 8
Thu Jan 30, 2014
Vasco Silva answered:
Hello, I would be more than happy to point you in the right direction. You can reach me at 203-217-3218. Thank you, Vasco
0 votes 2 answers Share Flag
Wed Aug 4, 2010
William James Walton, Sr. answered:
Stonefield Drive loops from Scott Road, right above the entrance to the Village at East Farms, but on the other side of the street and the entrance to Scott Gardens, back to Schraffs Drive, which is the first street on the left going up Scott Road. On the left hand side going up Stonefield Drive from Schraffs Drive are a series of condominiums, the ones closest to Scott Gardens having been built within the last three years. The hill is a steep one, but otherwise a decent area to live in, close to transportation, shopping (BJ's, Stop&Shop are nearby) and restaurants (Nino's Trattoria, Friendly's, McDonalds, and Burger King). ... more
0 votes 4 answers Share Flag
Thu Jan 14, 2010
answered:
Jhr1984

Follow Bill's advice and you'll be fine. The lender/LO you're currently/will be working with should/will know this as well. Its routine.
0 votes 8 answers Share Flag
Wed Jan 13, 2010
answered:
Hello Jhr1984,
The CHFA guidelines for condos are no longer used (I believe your comment above says that is what you were told). The CHFA lenders utilize the FHA approved condo list which can be found via the link below. Type in CT and your city name. Typically the FHA rules use the minimum 50% rule. However, there are other requirements.

The best thing to do is to run the condo by your lender to make sure that they can lend on that particular condominium project. In my area one of the condos, Riverbend, is not on the FHA list by its common name (there is literally a sign in front of the builing that says Riverbend), but in its bylaws it is known as Fairmont Condominiums, and it is FHA approved. No normal human being would know that, of course, so if you've found a place you really like, it's best not to make any assumptions, just ask your lender.

Please note that depending upon when you buy the FHA condo approval requirements are changing. See new FHA condo approval guidelines:
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-46bml.pdf

Let me know if you need more info.
... more
0 votes 3 answers Share Flag
Mon Jan 11, 2010
Lew Corcoran answered:
HUD has previously announced new procedure for approving condominiums for FHA-insured mortgages.

Effective with case numbers ordered on February 1, 2010, FHA Spot Approvals of condominium projects will no longer available. Most lenders will require that a condominium project be approved with FHA or they will not underwrite the mortgage application.

A few lenders will run non-approved condominiums through the HUD Review and Approval Process (HRAP) method PROVIDED that the condo project is not already working with another lender for approval. The “turn-time” for HRAP approval is expected to take 4-6 weeks.

Due to these changes by HUD, the Veteran’s Administration and Fannie Mae have both announced that HUD approval of condo projects will no longer be eligible. Projects secured by VA financing must be approved by VA. Conforming loans must meet Fannie Mae or Freddie Mac requirements to be eligible.

FHA has made the following changes to its requirements:

• The minimum required number of units in a project is reduced from 4 to 2
• Owner-occupancy ratio requirement within a project is reduced from 51% to 50%
• Pre-sale percentage within project is reduced to 50%
• FHA Concentration level is increased to 30%
• One year waiting period for conversions is eliminated
• Spot Approval is eliminated

In order to address current housing market conditions, FHA has temporarily waived some of the provisions of the new guidance for case numbers assigned on or after 12/7/09 through 12/31/10:

• FHA Spot Loan Approval process is extended to case numbers assigned on or before 1/31/10
• FHA Concentration requirement increased from 30% to 50% with the ability to permit FHA concentration up to 100% if the project meets certain criteria
• Owner-occupancy ratio permitted to 50% of the number of presold units when the project is proposed, under construction or still in the initial marketing phase
• Presale requirement reduced to 30%

To see whether or not a condominium project is approved by HUD, go to https://entp.hud.gov/idapp/html/condlook.cfm.

For additional information, go to http://www.hud.gov/offices/hsg/sfh/faqs/atl1val.cfm.
... more
1 vote 9 answers Share Flag
Sat Jan 9, 2010
answered:
Jhr1984

What this will mean is HUD will directly approve condos going forward. Lenders will still be required to collec the necessary documents (i.e. Master Deed, By laws, minutes, blanket insurance policy and the like), but they'll then send that documentation to their local HUD department for final review and determination. That can be a 2 to 6 weeks process in itself. ... more
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Fri Jan 8, 2010
Lew Corcoran answered:
FHA is currently permitting financing of condo units where the owner to renter ratio is as low as 30%. In addition, they have increased the maximum number of units that can have an FHA mortgage from 30% to 50%. No more than 10% of the units can be owned by one person or entity, and no more than 15% of the condo owners can be in arrears in their homeowner association dues. ... more
0 votes 3 answers Share Flag
Wed Dec 16, 2009
Anna M Brocco answered:
FAIR HOUSING LAWS--real estate professionals are prohibited from “steering”—enticing a buyer to purchase, or not, in specific neighborhoods; so, you should check out demographics on your own to assure your comfort level can be reached. Keep in mind opinions are just that. ... more
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