Condos For Sale In Minneapolis: And New FHA Help For Condo Buyers

Condo Owners Find Help With New FHA Mortgage Lending Policies

Home Destinations is aware of many condo owners who have wanted to sell their unit and couldn’t seem to without the benefits this easing will offer. At the same time prospective homeowners have sought to buy these units and couldn’t get financing that fit the tight lending conditions. The new FHA mortgage lending policy adjustments bring relief and hopes that condo units sitting too long amongst Minneapolis foreclosed homes have a better chance to sell.

Minneapolis and St Paul duplex sellers have a reach to buyers seeking condo's for sale.

For the week ending November 12, 2012, there were 11 Twin Cities duplex, triplex and fourplex sellers who received and accepted offers on their properties. Of these, 45 percent were traditional sellers with equity in their properties.

The number of pending transactions is down slightly from the same November week in 2011, just 21.4 percent of last year’s sales belonged to home sellers with equity. This year-over-year increase in equity seller market share resulted in an average off market list price of $132,118 for the week this year; up slightly from last year’s average sold price of $129,089.

More good news was reported for the levels of newly listed duplexes on the market as well. The week saw a 13 percent increase over last year. Traditional sellers dominated this year’s market, contributing 65 percent of the week’s new lisitngs.

"This is excellent news for sellers, buyers, condominium communities and the housing market across the country," said Thomas Skiba, the association's CEO, said in a statement. "We hoped this would happen a lot sooner, but it's an important step in the right direction. This will spark home sales and help tens of thousands of condominium communities begin to recover from the housing slump, and that can only help the national economy."

Property Sales Continue To Rise In August

"For buyers seeking multiple condos units for sale in one complex, the larger the complex the safer you are because there is more money to hire a professional management firm and people who are available for the board of directors, who may also have a personal investment motivation to be sure everything runs smoothly. The smaller the condo complex an investor may be considering, buyers may have a greater exposure to risks. Condo buyers may find themselves in a tangle with fewer partner dollars to sort it out" advises Jenna Thuening, owner of Home Destination.

A Minimum Of 30 Unites Must Be Sold First To Gain An FHA Mortgage Endorsement

The notable changes in condo lending policy requirements are found in Section 3.4. are replaced by the following updated policy guidance. At least 30 percent of the total units must be sold prior to endorsement of a mortgage on any unit. This pre-sale requirement is not applicable to existing projects or non-gut rehabilitation conversions, which require a 50 percent owner-occupancy percentage. While these changes are clearly temporary, the additional flexibility was welcomed by the Community Associations Institute, a trade group that has aggressively lobbied for easing of the more stringent rules put into place in 2010 and 2011. While being better implemented in the long run, today it helps both homeowners the FHA better steward its funds.

Another significant policy update, which will remain in force for almost two years, includes easing the requirement that legislated the number of units in a building that can be delinquent on homeowner association dues. With the new changes, no more than 15 percent of a building's units can be more than 60 days delinquent. The previous rule tolerated only 30 days delinquency, making it harder for struggling homeowners to avoid lending limitations and stop foreclosure proceedings.

The pre-sale percentage must be documented in one of the three following options:

Copies of sales agreements and evidence (loan commitment) that a mortgagee is willing to make the loan.

Evidence that units have closed and are occupied.

Information from a developer/builder that lists all of the units already sold, under contract, or closed. This can be some form of documentation used for the company‟s own tracking purposes as long as it is accompanied by a signed certification from the developer.

Condo Buyers Due Diligence Process

Homeowners seeking to buy a condo sometimes find requirements for an attorney‟s certification confusing in the mix of condominium certifications. According to the press release, "The FHA does not require an attorney‟s certification. However, mortgagees, builders/developers, homeowners‟ associations, management companies, or project consultants may obtain this as part of their own due diligence process. This document does not replace other required condominium certifications that are required to be executed".

Condo Buyers Gennerally Gain Safely In Size

Condo investors should keep in mind that generally the larger the condo complex the safer you are because there is more money to hire a professional management firm and people who are available for the board of directors. The smaller the condo complex, the more likely you face more risks carrying the potential that you will be left with a tangle you may not be able to get out of.

Home Destination, a Minneapolis Certified Distressed Property Expert and professional Realtor with RE/MAX Results, helps homeowners determine when it makes sense to refinance and to understand their local housing market. Homeowners seeking to buy a condo or apartment in Minneapolis and St Paul real estate communities will appreciate Home Destination's no-pressure well-informed decision making process. Start by the added knowledge a buyer gains by working through a mortgage worksheet helps condo buyers to prepare for a mortgage loan and call Jenna Thuening at 612-396-7832.