Are you an FHA buyer looking at condos? If so, think again…

Why many communities in VA lost their FHA certification.

Ok, so I show my first time home buyers a Homepath condo because I’m familiar with the many incentives Homepath offers, including no requirement for an appraisal or HUD approval. Well, even though my client has stellar credit, the Homepath automated underwriting denies my client, although they are over qualified to buy the home under FHA guidelines. So after almost two months, we are still waiting for FHA approval from HUD on the condo, and fighting to keep the transaction alive for my buyer client.

Why is this important to you,  because this could have been avoided. In May, HUD ‘de-certified’ every condo and townhome and required each to re-apply for certification, giving  notice about what was going to happen. The reason is the crash of the housing market.  FHA realized that a lot of delinquent and foreclosed properties were condos, so it tightened its rules to help limit liability.

So if you are considering purchasing in condo or townhouse communities, please realize that if the management hasn’t reapplied, units can’t be purchased with an FHA loan. This my friend hurts everyone, the owners trying to sell by limiting their buyer base and the buyers who can buy if the management didn’t apply for FHA approval.

Some condo associations immediately applied for recertification, but many did not. Some may have not realized they had to get recertified. The result is buyers are ineligible for FHA financing to buy these units and many sellers don’t understand how this limits their buyer profile.

We need to get the word out to condo owners, condo associations, property managers, and anyone who is involved in buying or selling a condos or townhomes. Is your condo community FHA approved? Go to HUD.GOV Enter a ZIP Code or just the city and state and a listing of every condo association pops up. If in the right column it says “expired,” it’s not FHA certified. Then it’s time to get in touch with your condo board or association. There’s a good chance they’re not even aware of the issue.

Click link for details on Condominium Approval Process for Single Family Housing.

SOLD in Bellamy Plantation in Virginia Beach, VA

All brick two story home boasts approximately 2753 square feet of living space, 4 bedroom & 2.5 bath overlooking lake in Bellamy Plantation. Home boasts a beautiful inground pool with new liner, raised decking and large outdoor entertaining space. Althought this home needs some TLC it’s priced accordingly.

Listing Price: 349900
Address: 1909 Grey Friars Chase
City: Virginia Beach
State: VA
ZIP: 23456
Location: Bellamy Plantation
School District: Salem High School
Age: 1987
Monthly Rent: N/A
Square Feet: 2753
Bedrooms: 4
Bathrooms: 2.5
Type: Single Family
Style Traditional / Transitional
Parking: Two Car Attached Garage
MLS # (if any): 1134381

 

 

 

 

 

 

 

Our impact on our communities

So it’s been an exhausting couple of weeks for me on the real estate front here in Hampton Roads. I’ve had several poignant moments that have stopped me in my tracks. I thought I might share a few.

One of the most joyful parts of my job is helping my client (buyer or seller) accomplish their goals and/or dreams. It hit me a few days ago, what an incredible affect what we do as Agents and Real Estate Specialists has on our community and in the lives of so many. Some are starting a new life, while others are closing a chapter in theirs.

We often assist buyers in re-locations from different parts of the country and the world. In addition to coming to a community they are not familiar with, they are often faced with the reality that Hampton Roads housing market is priced above thier current market. I’ve seen this with re-locations from Texas, Georgia and a few other states. So, basically the buyer is getting less house than they currently have or had for more money. This can often make finding a home rather difficult and in some cases disappointing for the prospective purchaser. I try to keep my client’s spirits up, their expectations in order and help them find the best property that meets their housing needs at  the best price possible. It’s so rewarding to close the transaction and the buyer’s are delighted with their new home, although it’s not as big or grand, they are finally settling into their new life.

Another recent appointment was with a distressed property owner. I really can’t express how it burdens my heart to have to tell sellers their home is not worth what they paid for it, especially when the market value  is extremely lower than what they owe the bank. I find it even harder when they break down and fall apart. I will admit I have sat and cried with sellers more than a few times. As Real Estate Specialists, what we do and say has great impact on the lives of our clients. I find too often in this economy that compassion is lost and cynicism is rampant. Sit down and listen to your client’s needs.  Explain how foreclosure and short sale work, most don’t really know, as they never imagined they might face this terrifying possibility.

A highlight to our job is the excitement of the first time home buyer. Normally, they enter the process with fear and hesitation not to mention a long list of horror stories offered up by friends and family. We educate them about the buying process, their rights, get them pre-approved for a loan and hit the road. That’s when the “real adventure” begins! We find the home that evokes what I like to  call “perma-grin”, yep that smile that seems to be permanently affixed to the buyers face. When they talk about the property, they smile, when the re-visit the property, they smile. This is a tel-tale sign we’ve found “the one”. So we navigate the offer, negotiations, inspections, appraisals, etc and proceed to closing. After the ink of the last signature has dried, they receive the keys to their new home and the title “First Time Homeowner”. Of course the perma-grin is back!

I have to confess, real estate can be a roller coaster, but I have always loved roller coasters and I do love this job that I have been so blessed with. Thank you to my instructors, brokers, fellow agents, contractors, vendors, neighbors,  friends, family, clients and past clients you make my job as a Real Estate Specialist, worth it! I can honestly say I believe I am doing what I was called to do.

Hampton Roads Housing Stats for April 2011.

April was the first month of 2011 to not have gains in under contract and settled sales, which is a major indicator that the housing market in Hampton Roads may not have bottomed out. Looks like we’re still on the road to recovery.

LISTINGS

Active listings decreased by 6.7% from 15,374 in April of 20110 to 14,338 in April of 2011.

PENDING  OR UNDER CONTRACT

Residential pendings decreased by 13.5% when compared to April of 2010.

SALES (TOTAL RESIDENTIAL SALES)

Property sales decreased by 3% when compared to April of 2010.

DISTRESSED SALES

The decline in the active distressed homne market and a drop in the number of distressed settled homnes are signs of stabilizing and home prices level off.

INVENTORY

Virginia Beach: 7.4 month supply of homes on the market.

Chesapeake: 8.51 month supply of hones on the market.

Norfolk: 10.87 month supply of home son the market.

**NOTE: All statistics provided herein were provided by Real Estate Information Network (REIN)

Buyers, Have you missed the boat?