Now, buyers who hope to purchase a home with FHA’s low down payment loan program are getting frustrated that fewer condo buildings are now FHA approved.

For buyers like Kristy Fender, of Chicago, FHA certification is a must-have on her list, and not just because it lets Fender and her fiancé, Dan Harvey, make a smaller down payment on a home purchase. She also figures that in approving buildings the FHA is doing the due diligence that she would otherwise have to do.

That’s amplified by the fact that many associations haven’t taken the initiative to obtain FHA approval, do so poorly, or encounter problems related to distressed properties.

The number of rejected buildings is adding up, due to bad paperwork and bad balance sheets as an increasing number of condo associations struggle with rentals, short sales and foreclosures. It is jeopardizing the plans of condo sellers who rely on the FHA’s stamp of approval as a marketing tool and condo buyers who either want or need an FHA-approved building.

Condo financing has become more complex and challenging for buyers (and sellers) since FHA and Fannie Mae tightened their condo qualification guidelines. With conventional condo loans requiring at least 10% down, FHA has been a favorable option for condo buyers.

But…

Some associations are deciding that the effort and the expenses tied to the application process, which can run into the thousands of dollars, aren’t worth the payoff and are letting their certifications lapse.

It behooves associations and sellers to be proactive with their condo building’s FHA certification, which is more significant now as record low interest rates are encouraging first-time buyers into the market place, many of whom gravitate towards FHA approved condos. And, it doesn’t have to be a complicated process.

We can help.

We’ve team up with a respected, local mortgage company who will take the reigns of the certification process at no cost to the association, seller or buyer. Whether you’re a buyer considering purchasing, or an owner thinking about selling in a non-approved condo building, we can help. Contact us to learn more about this special program.

Similar posts you may find interesting:

1. FHA Condo Approvals Set to Expire Soon
2. Seattle condos gain FHA approval
3. Historic Mortgage Interest Rates
4. FHA condo guideline changes

In all seriousness, many people don’t realize how many safety hazards and fire risks arise during their holiday celebrations. To help you survive Thanksgiving and your crazy family (we all have one!) with your roof still intact, we wanted to give you our Top 5 Holiday Safety Checklist.

Tip #1: Check your smoke alarm batteries

Smoke alarms are one of the most overlooked lines of defense in a household, but a regular smoke alarm check-up help prevent disasters. According to the National Fire Protection Authority (NFPA), nearly two-thirds of home fire deaths occurred in homes that did not have working smoke alarms. Check the batteries in all of your alarms by pressing the button on the front of the unit. If the unit makes a sharp noise, the batteries are still doing their job. While you’re at it, you should also check the date on the unit, which is usually listed on the back or near the battery backup on the inside. We recommend replacing any smoke alarms that are at least 10 years old. If the units are attached to a ceiling or wall, it shouldn’t take more than a gentle twist to remove and replace them. We know that this reminder gets repetitive with how often people are reminded to check their batteries, but it’s a very, very important, very simple safety measure to check off your list.

Tip #2: Make sure you have smoke alarms in each bedroom and on each floor

Every bedroom should contain a smoke alarm, especially if you sleep with the door shut or have guests who might. Even if you’re broke, you should be able to scrape together money for a pack of alarms that could literally save your life, like this one from Costco. The NFPA has a complete list of installation and maintenance tips for smoke alarms.

Tip #3: Install an anti-tip bracket on your oven.

Right now you’re thinking, “Anti-tip bracket? What the heck is that?” Well, it’s not something for the bar stool at your local pub (though it probably should be!). Anti-tip brackets prevent the stove from leaning over when you’re pulling out large items (like giant birds, for instance) or when small children might decide to use the oven door as a stepping stool to get up on the counter. As many people will be cooking a big turkey or getting their tofurkey on in the coming days, an anti-tip bracket could prevent a big mess, or worse, a grease fire. You can buy one of these metal brackets for no more than $10 or $15 at a local appliance or hardware store.

They’re generally easy to install, and they secure to the floor or wall and connect to the rear leg of the stove.

Tip #4: Make sure your hand rails are sturdy

Loose railings are a fall waiting to happen. Make sure all your hand rails are held tight to the wall so Grandma can get up and down the stairs with peace of mind and Timmy doesn’t knock over the bannisters when he’s rail-riding. Balusters should ideally be spaced no more than 4 inches apart to prevent any little heads from getting stuck between them. There’s not really a very easy work around for wide spacings, other than potentially fastening plexiglass to the railings. Either that, or have Grandma & Timmy wear helmets around the house. Kidding! (But railings are something for you and guests to be aware of.)

Tip #5: Know how to put out a grease fire

Many people don’t know the proper way to stop grease fires. First, and most importantly, you should never put water on a grease fire, and you should never try to move it outside — the fires just spread too easily. Instead, if something you’re cooking catches fire in a pan or a pot, put on and oven mitt and slide the metal cover back over the food to smother the fire. Immediately turn off the stove, but again, do not move the pot or pan until it has completely cooled. If you can’t control the fire and it begins spreading, evacuate everyone from the house immediately and call 9-1-1. Don’t try to treat any burns until you’re safely outside.

We hope you found the information exciting and entertaining. It’s always more fun to learn with a smile on your face . Have a safe and happy Thanksgiving with Grandma and lil’ Timmy.

You can learn more tips and tricks from Farren West & EZ2Inspect.com @ Facebook.com/HomeInspectionChecklist

Similar posts you may find interesting:

1. Top 5 safety tips for every homeowner
2. Can I hire my contractor dad to inspect my condo?
3. Do You Need A New Construction Inspection?
4. Types of Condo Inspections

Last week, FHA got a reprieve from Congress, which reinstated the higher loan limits in 42 states through 2013. For the Seattle/King County area the loan limit is back to $567,500.

Unfortunately, Congress chose not to reinstate the higher limits for conventional loans (e.g. Fannie Mae and Freddie Mac). The conventional loan limit in Seattle/King Country will remain at $506,000.

Most single family and townhomes will qualify for FHA. The higher limit means an additional 92 properties are eligible. Of the 1,709 single family and townhome properties currently for sale in Seattle today, 70.6% are available under $567,500.

Condos are a different story as the building complex will need to be approved by FHA in order for purchases in those buildings to be eligible for FHA loans. Recent changes to FHA guidelines now require condos to undergo recertification every two years, so some buildings that were once FHA approve may no longer be.

As of today, per the HUD website, 408 condominiums buildings in Seattle are FHA approved, which has increased over the past year. Overall, less than half of the condo buildings in Seattle are FHA eligible.

Of the 873 condos currently available for sale in Seattle, 35% or 307 units, are FHA approved. Throughout King County, 42% of the condos units for sale are FHA approved.

>> View FHA approved Seattle condos listed for sale. *

* Subject to buyer verification

Similar posts you may find interesting:

1. FHA and Conforming Loan Limits Expected to Reduce
2. HUD approves monetizing the $8,000 tax credit
3. Newly constructed FHA approved condos
4. NWMLS 2007 Condo Highlights

Unlike a single family house or townhouse, most condominiums in Seattle have policies covering pet ownership. Usually, it will mandate the number of pets allowed, their size by weight, breed and types of animals.

To help you in your condo search we’ve compiled a list of pet friendly condos in Seattle. So far, we’ve included a number of condos in downtown Seattle and surrounding neighborhoods.

>>   List of pet friendly condos (pdf)

If you’d like to learn more about pets and condo ownership or are in the market, please contact us for additional information and/or to get started.

* List intended for informational purposes only and is not meant to be an exhaustive list of pet friendly condos. Buyers should verify condo association pet policies to their own satisfaction.

Seattle Dog Parks

Places to Adopt

• Seattle Animal Shelter – dogs, cats, critters
• Human Society of Seattle/King County – dogs, cats, critters
• PAWS – dogs, cats, critters
• Animal Talk Rescue – cats, critters, dogs
• R.E.D Rescue Every Dog – dogs
• Homeward Pet – dogs, cats

Places to Play

• Blue Dog Pond – Southeast Seattle by I-90
• Golden Gardens – Northwest Seattle
• Genesee Park – Genesse
• Herring’s House Park – Duwamish
• Magnuson Park – Sand Point
• I-5 Colonnade -Eastlake
• Jose Rizal Park – Beacon Hill
• Northacres Park – North Seattle
• Plymouth Pillars – Capitol Hill
• Regrade Park – Belltown
• Westcrest Park – West Seattle
• Woodland Park – Green Lake

No related posts.

They usually take place when an issue arises or as part of a preventative maintenance routine. The findings, if any, do not necessarily indicate the potential defect(s) will affect the structure or owners’ livability and enjoyment of the property. In severe cases, though, it may indicate major repairs will be needed (e.g. residing) and may be an impetus to levying an assessment and/or even litigation.

There are issues that owners should be aware of when contemplating a building envelope inspection, as well as for buyers considering making a purchase in a building that recently completed a study.

For owners and associations, a building envelope inspection is important to determine if there are underlying issues, and if so, their extent. It may be unavoidable. But, it can be a double-edged sword. As the Condo Law Group noted, if a building envelope inspection finds defects, even if there is no physical damage, it becomes a disclosure item. Having an independent report stating a building has defects may devalue the property in the mind of potential buyers.

In the worst case, an association may need to establish a special assessment or initiate a lawsuit, even if it’s procedural in nature. The unfortunate effect of litigation is that lenders will avoid financing purchases in those buildings until the suit is resolved. Absent cash buyers, a lawsuit may delay sales…potentially for years.

On the other hand, once repairs are made, with its (fill in the blank – new siding, windows, decks, etc) the building becomes more appealing for buyers knowing that it’s been updated and issues resolved.

Buyers contemplating purchasing a unit in a building that has undertaken a building envelope study should not be dissuaded by that fact. However, they should review the report findings thoroughly and determine the reason for the study. Buyers should do their due diligence in noting how comprehensive the inspection was, the standards used and if a reputable firm completed it. In some cases, a building envelope study may have been nothing more than a visual inspection of the exterior.

If you’re considering condo living, let our knowledgeable condominium specialists and inspection partners guide you.

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© Seattle Condos And Lofts

Similar posts you may find interesting:

1. Understanding a Building’s Envelope
2. What is a Condo Reserve Study?
3. Condo Legislative Update – Reserve Studies
4. Types of Condo Inspections

What are HUD Homes?

HUD homes are foreclosed FHA-insured homes that were acquired by HUD. Essentially, they are similar to bank-owned, Fannie Mae and Freddie Mac properties. The only difference is that these properties were secured by a FHA rather than a conventional mortgage loan.

HUD homes are listed in the NWMLS so they’ll be included on virtually every online home search website. However, HUD created a specific site to search for HUD properties throughout the country at www.HUDHomestore.com.

Unlike other bank-owned properties, HUD homes are sold a bit differently. Initially, they are offered through a 10-day sealed bid process that is open to owner-occupant buyers. If there is no winning bid, the process is re-opened and reviewed daily for up to 30 days. If there is still no winning bid, it is then opened up to all buyers including investors.

Offers on HUD properties can only be made through a registered Broker and not all real estate brokerages in the Seattle area are registered. Seattle Condos and Lofts is affiliated with Keller Williams Greater Seattle, one of the few Seattle brokerages approved to list and sell HUD properties.

HUD properties are sold “as-is” so we highly recommend that buyers inspect the property. If you purchase a HUD property through us, we will provide a complimentary home warranty. Additionally, many homes will be eligible for an FHA 203K rehab loan.

HUD may also pay a portion of the closing costs and many buyers may be able to qualify for a FHA loan.
Contact us to learn more about buying HUD properties.

HUD Condos for Sale

One of the better HUD condos available is Unit #1407 at Arbor Place Tower in Belltown. It’s an updated SW corner unit that is one of the nicer units in the building. However, a little work will spiff it up. It’s currently offered at $301,000.

View additional details and photos of Unit #1407

The Florentine is a unique converted warehouse building near Century Link Field in Pioneer Square. Unit #222 is a one-bedroom loft on the west side of the building that has been partially updated (e.g. slate tile floors, cabinetry, bath). It is presently listed at $288,000. The last time units at the Florentine sold for less than $300,000 was back in 2004.

View additional details and photos of Unit #222

Visit www.HUDHomeStore.com to view all HUD homes available for sale.

Similar posts you may find interesting:

1. Marselle Condominium Revisited
2. Listings and an Open House
3. Trio Condos – Belltown
4. Stadium Lofts Update

In looking at the sales price to list price ratios, on average, Seattle condos sell for 90% of the original list price (10% less) and 95% of the last list price (5% less).

Now, this doesn’t necessarily mean that the condo you purchase will sell for 10% below the list price. The amount buyers can negotiate off of the price will depend on a number of factors such as the market environment, the motivation of the seller, inventory level, competition from other buyers and time on market. Nevertheless, the ratios show there is ample pricing flexibility in the market today.

If buyers expect to realize a 20-30% reduction off the price, that’s not very likely. But, not impossible. There are opportunities to realize great values on bank-owned and short sale properties but they only represent 25% of all Seattle condo sales.

The figures above are 12-month averages of the selling price to list price ratios of Seattle condo resales. It includes regular market and distressed sales, but I excluded new construction since the sales data rarely include the actual original list price of new construction units.

>> Search Seattle Condos for Sale

Similar posts you may find interesting:

1. Seattle Condo Market Update – March 2011
2. 2011 Seattle Condo Year End Review
3. Seattle Condo Absorption Rate
4. Seattle Condo Market Report November 2011

Unlike single family homes and townhomes where most properties will qualify for FHA financing, the number of available FHA eligible condos in Seattle are far more limited. Overall, there’s only about 350 condominiums in Seattle that are FHA approved, a relatively small percentage.

A couple of years ago FHA eliminated the spot approval process meaning if you’re looking for FHA condos, you’ll need to locate a building that’s already approved. With our FHA search filter, it’s never been easy to search for available FHA approved Seattle condos for sale.

To search for FHA approved properties, click on the Features option under the Search tab.

Then, check the FHA Approved box.

>> Search for FHA approved Seattle condos

Note, the FHA listing status is reliant on the listing agent. Recent changes to FHA now require condos to re-certify every 2-years, therefore, a building may lose its FHA status during the listing period. Buyers and their lenders should verify the FHA approval status with HUD.

____________________________
© Seattle Condos And Lofts

Similar posts you may find interesting:

1. FHA Condo Approvals Set to Expire Soon
2. Condos Becoming Elusive for FHA Buyers
3. Congress Reinstate Higher FHA Loan Limits
4. Newly constructed FHA approved condos

The following is from a HUD press release:

FRIDAY, JULY 22nd IS DEADLINE FOR AT-RISK WASHINGTON STATE HOMEOWNERS TO PRE-APPLY FOR UP TO $50,000, FORGIVABLE “BRIDGE LOAN” TO AVOID FORECLOSURE & HOLD ONTO HOMES

SEATTLE – This Friday, July 22nd, is the deadline for at-risk Washington state homeowners facing foreclosure as a result of a loss in income due to a change in employment or high medical bills to qualify for Emergency Homeowners’ Loan Program (EHLP) interest-free, forgivable “bridge loans” of up to $50,000 to bring their mortgages current and help them pay their mortgages.

The U.S. Department of Housing and Urban Development awarded Washington state some $56 million for “bridge loans” under the EHLP program. The average EHLP “bridge loan” is expected to be about $35,000 so as many as 1,500 eligible, at-risk homeowners at-risk could benefit from the program, created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

“The clock is ticking for Washington state homeowners at risk of foreclosure,” said HUD Northwest Regional Administrator. “It is absolutely critical for them to get to the EHLP Web site at www.findEHLP.org before Friday, July 22nd, to pre-apply for an EHLP bridge loan. Simply put, it could be the difference between losing or holding onto their homes.”

At-risk homeowners interested in the EHLP “bridge loan” program should visit its Web site at www.EHLP.org or by calling EHLP at 855-FIND-EHLP (346-3345). By Friday, July 22nd, they must have completed and submitted the EHLP Pre-Applicant Screening Worksheet and the Third-Party Authorization to pre-apply.

EHLP funds will pay a portion of an approved applicant’s monthly mortgage including missed mortgage payments or past due charges including principal, interest, taxes and insurance. Only participating EHLP agencies found on www.FindEHLP.org are approved to accept Pre-Applicant Screening Worksheets. Homeowners should beware of scams. It is free to submit a worksheet or get assistance with completing the worksheet. Any company asking for money to assist homeowners with the EHLP application process is a scam. Contact information for participating agencies, the Pre-Applicant Screening Worksheet and more information on the EHLP assistance and its eligibility requirements can be found at www.FindEHLP.org or by calling toll free at 855-FIND-EHLP (346-3345).

To be eligible for an EHLP “bridge loan,” households may incomes of no more than 120 percent of area median income. For EHLP income limits in Washington state, see http://www.huduser.org/portal/EHLP/index.html

Due to expected high demand for EHLP “bridge loans,” interested homeowners will complete a Pre-Applicant Screening Worksheet first. If there are more potentially eligible pre-applicants than funding available, the worksheets will be entered into a random selection process. Homeowners will be randomly selected and invited to apply for EHLP. Unfortunately, some qualified homeowners will not be selected and some will complete an application but not be approved to receive assistance because they do not meet all of the requirements.

The EHLP program is being administered on HUD’s behalf by NeighborWorks America, a national nonprofit organization that, since 1991, has been committed to providing access to homeownership and to safe and affordable rental housing.

Similar posts you may find interesting:

1. Mortgage Help Day – October 2, 2010
2. FHA Announces New Changes
3. FHA and Conforming Loan Limits Expected to Reduce
4. Congress Reinstate Higher FHA Loan Limits

Conforming Loan Limit

The current conforming loan limit is temporary, enacted in 2008, and is set expire on September 30, 2011. A day after, on October 1, 2011, the $506,000 limit set by the Housing and Recovery Act of 2008 for King, Snohomish and Pierce counties will take effect. However, this is not guaranteed as the higher limit could still be extended. View limits for other counties.

How will this affect me?

If you’re purchasing a property and anticipate securing a conforming loan, you’ll need to come up with a larger down payment to meet the lower $506,000 loan limit. Otherwise, you’ll be in jumbo loan territory with higher rates. Fortunately, it will not affect the vast majority of Seattle area condo buyers where 85.2% of all condos sold in Seattle during the first half of this year were priced below $550,000.

FHA Loan Limit

In 2008, the FHA loan limit was temporarily increased to $567,500. It, too, will revert to the limit set under the Housing and Economic Recovery Act (HERA) as of October 1, 2011, unless it’s extended by Congress. For King, Pierce and Snohomish counties the FHA loan limit will be $506,000. FHA info and limits for other counties.

How will this affect me?

Today, you can buy a property priced up to $588,000 with FHA, assuming a 3.5% down payment ($588,000 x 0.965 = $567,420 loan amount). As of October 1st, the maximum price will decrease to approximately $524,350 in order to meet the $506,000 loan limit. And, if you’re financing closing costs, then the purchase price will be lower still. However, the net effect is negligible since less than 4% of condos purchased in the first half of 2011 fell within this range.

Keep in mind, the changes aren’t necessarily set in stone, they can still be adjusted. But, if you don’t want to take that chance and if you are in the $524,350 to $588,000 price range and using FHA, or if you’re looking to avoid a jumbo loan, then contemplating a 30-day closing period you have around 50 days to find a home and get under contract by the end of August. However, some lenders may tighten the time frame.

Similar posts you may find interesting:

1. Congress Reinstate Higher FHA Loan Limits
2. FHA Mortgage Insurance Premium Increases
3. FHA Mortgage Insurance fees changing Oct 4th
4. Deadline Ticking for EHLP’s Forgivable Bridge Loan