It used to be relatively easy for a condo complex (or “project” in FHA parlance) to get certified by the FHA, meaning the agency would loan money to qualified buyers of units there. But with the burst of the housing bubble, FHA realized that a lot of delinquent and foreclosed properties were condos. So it tightened its rules.

Essentially, it ‘de-certified’ every condo and townhome and required each one to re-apply for certification, giving plenty of notice about what was going to happen. And in May it did just that.

Some condo associations and management were on the ball and immediately applied for recertification. But many, for whatever reason,  did not. Some may have not realized they had to get recertified. Others may have had officers concerned about liability issues if they signed certification documents. And of course some condos simply don’t meet the FHA’s requirements.

Whatever the reason, the end result is that buyers are ineligible for FHA financing to buy a unit there; something many sellers don’t discover until late in the process when they learn that their pool of prospective buyers has shrunk considerably.

And because the certification process can take months, deals fall through or never get off the ground in the first place. Fewer buyers means prices will have to go down.

Bottom line: We need to get the word out to condo owners, condo associations, property managers, and anyone who is involved in buying or selling a condo or townhome: Find out whether your condo community is FHA certified.

Get in touch with the condo board or association.  There’s a good chance they’re not even aware of the issue.

Requirements for FHA certification

• For a condo complex (or “project”) to have its units qualify for FHA loans, it must meet the following requirements:

• Insurance Coverage: Projects must be covered by hazard and liability insurance and, when applicable, flood and fidelity insurance.

• Commercial Space: No more than 25 percent of the property’s total floor area in a project can be used for commercial purposes.

• Investor Ownership: No more than 10 percent of the units may be owned by one investor. This limitation also applies to developers/builders that subsequently rent vacant and unsold units.

• Delinquent Home Owners Association (HOA) Dues: No more than 15 percent of the total units can be in arrears (more than 30 days past due) of their condominium association fee payments.

• Pre-sales: At least 50 percent of the total units must be sold prior to endorsement of a mortgage on any unit.

• Owner-occupancy Ratios: At least 50 percent of the units of a project must be owner-occupied or sold to owners who intend to occupy the units.

• FHA Concentration: No more than 30 percent of the total units can be encumbered with FHA insurance.

• Budget Review: The homeowners association budget must include sufficient funds to “maintain and preserve all amenities and features unique to the condominium project” as well as insurance coverage.

For the details, click here to a one-page HUD PDF.

For the 13th consecutive year, nobody sells more real estate than RE/MAX!

3-24-11 Press Release

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Two  100-year floods could occur two years in a row, or a month apart, depending on how much rain is falling or how much snow falls & how quickly it melts.  A 20-year flood would have a one in twenty (or 5%) chance of occurring in a particular year.  A 500-year flood has a one in 500 (0.2%) chance of occcurring.

Likely the 500 year flood would be more catastrophic than the 100 year flood, which would be more catastrophic than the 20 year flood, etc.

PRESS RELEASE 

FOR IMMEDIATE RELEASE
CONTACT: Jerry Long 273-1100 

JERRY LONG AFFILIATES WITH
RE/MAX ASSOCIATES OF TOPEKA 

(TOPEKA, KS) (May 26, 2010) — Jerry Long has joined RE/MAX Associates of Topeka as an Associate Broker.  The move was announced by Connie Davidson, Managing Broker of the firm and Greg Armbruster, President.  “We’re excited to have Jerry back in the RE/MAX family,”
Davidson said.   

RE/MAX,Associates of Topeka was founded in 1985, and is an independently owned and
operated franchisee of RE/MAX International.  RE/MAX was founded in 1973 and now
provides real estate services in over 70 countries.  RE/MAX Sales Associates
help more families buy and sell real estate every year than any other brokerage
organization in the world.  Long will specialize in providing professional
representation to buyers and sellers of residential real estate in Topeka and
the surrounding areas. 

Long was an Associate Broker with RE/MAX for 17 years before joining the senior
management team of another firm, during which time he received several
management excellence awards from the national franchisor.  Most recently, he
was Broker/Owner of Jerry Long Real Estate.  His new office is located in the
RE/MAX building at 5815 SW 29^th Street in Topeka.

 Long was licensed in 1986 and holds a Kansas Real Estate Broker’s License.  He holds
the ABR (Accredited Buyer Representative), CRB (Certified Residential Brokerage
Manager), CRS (Certified Residential Specialist), GRI (Graduate Realtor
Institute) and SRES (Seniors Real Estate Specialist) professional
designations.    A leader in the real estate industry, Long has served as
President of the Topeka Area Association of REALTORS® and Topeka Area Multiple
Listing Service, Inc. in 2004.  He is a member of the National Association of
REALTORS®, has been a Director of the Kansas Association of REALTORS® and is
active in community affairs.   

Long has consistently been a top agent in the Topeka Area Association of REALTORS®,
and has received their REALTOR® of the Year and Master’s Club awards.  He was
consistently a member of the RE/MAX 100% club and was inducted into the RE/MAX
Hall of Fame in 2001.  Long can be reached by telephone at 785-273-1100, by
email at Jerry@JerryLong.com or on the web at  www.TopekaHomeSearch.com.

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