Industry Trends for 2012
► FHA Loans vs. a Conventional Loan
§ Very common now. They require 3.5% down payment. Recommend every property go through the application process for the property to be FHA approved. The cost is $500.
§ No more than 10% may be owned by one investor.
§ No more than 15% of the total units can be in arrears more than 30 days.
§ At least 50% of the units are owner occupied.
§ Reserve contribution is at least 10% of the budget.
§ Budget provides for adequate funding for insurance coverage and deductibles.
§ The budget review is done for each loan, not a one time thing.
§ Meet the insurance requirements.
§ Only 30% of the units can be encumbered by FHA insurance.
► Regulations – Washington State will continue to pass more regulations – changes to the Condominium act and reserves study law, etc.
► Manager’s licensing is in the near future.
► Foreclosures, bankruptcies, and collections will continue to be an issue for a while.
► Electronic Notice of Meetings – Bill was submitted – require owners to “Opt in”, but did not pass.
► Lenders are scrutinizing the financial health of a property. It will be harder to sell your home without a reserve study and low reserves have a negative impact.
► Architectural Standards – solar panels and electric car charging stations.