FHA Loans vs. a Conventional Loan
 

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.

► Managers 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.

 
 
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