We have at least four condominium units up for sale, and another 2-3 interested in going to market. And what a seller's market it is! We were visited by some realtors at the condo board meeting and told that the number of residences up for sale, in all income brackets, locations, and styles, is at least twice as deep as usual.
One barrier to sale are the heightened scrutiny placed on loan applicants. It's a good thing generally, perhaps a bit of an overreaction momentarily. Conventional loans may require 20% down payment. Meanwhile FHA loans, which are available to those with somewhat lower incomes and credit score, require closer to 3.5% down payment. Furthermore, condominiums are required to be inspected and registered with the FHA in order to be considered at all.
The last week's been a flurry of activity in gathering and converting to .pdf copies of our insurance, by-laws, budget, reserve projection, and flood map study. What percentage of units are more than 30 days overdue in their condo fees? What percentage hold FHA loans already (maximum concentration 30%)? What percentage is used for commercial purposes? What percentage are occupied by owners? On and on...
Fortunately, a realtor is helping us gather much of the data, and is also filing the application on our behalf with the FHA. Hopefully the government will do its part, and soon our owners will find it easier to get themselves into new homes.
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