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.

Summer is a prime moving season for many families, especially those with young children who want to settle in their new home before the school year starts. Experts at Move.com offer several tips for making your move a seamless and stress-free experience.

1. When hiring professional movers, get written estimates from at least three licensed companies. For a few extra dollars, consider buying moving insurance. Investing in full value protection means any lost or damaged articles will be repaired or replaced.

2. Take photos of every room in the new home while they are vacant. Then write down every item from your current home and which room those items will go before you begin packing them.

3. Begin packing early, even if it’s one room or one cabinet at a time. Toss or donate any items you don’t need. And remember to fill out change-of-address notices and schedule utilities ahead of time.

4. If you have children or pets, consider hiring a sitter or daycare for moving day, or find a safe place for them so they’re not underfoot.

5. When breaking down larger items, like shelving units, into smaller pieces, put the screws, washers and other small components in a sealed baggie and label it clearly. Keep all baggies with small parts in one box and carry it with you on moving day.

6. Take pictures of electronic hook-ups for TVs, DVRs, home theater systems and computers before unplugging them. Print out the pictures and label them in detail, so you will be able to set up the systems properly once you are in the new home. Also keep all loose wires in separate baggies or boxes that are clearly labeled.

7. Dispose of any household products you no longer use, such as paints, pesticides and detergents. Contact the city’s waste disposal department for guidelines on how to dispose of them safely. For items that you plan to take with you, like laundry detergent or cleaning products, pack them in a small box within a larger box to protect against leaks and seal the boxes securely.

Plan ahead and start packing early, so you can enjoy the moving experience with less stress.

Puppy Love

Pets have become an important part of American family life, according to a recent Harris Poll. More than three out of five Americans (62 percent) have a pet, and 91 percent of them consider their pet to be a member of their family.

Among pet owners:

69 percent have dog
51 percent have a cat
11 percent have fish
7 percent have a bird

Pet owners show their love in several ways: 57 percent of owners say they let their dog or cat sleep in the bed with them and 33 percent purchase holiday gifts for them. However, two-thirds of owners say they have never dressed their pet in some type of clothing, and 83 percent say they have never taken their pet to work with them.

Moving can be stressful for pets, so be sure to stick with their routine as much as possible and, if possible, have a family member or friend care for them while you pack, according to VanLines.com. Also make sure your pet’s vaccinations and treatment doses are up to date. Give your pet an early dosage before moving to a new city, and ask your veterinarian for references for vets in the new city.

Fast Fact

There were 6,132 farmer’s markets operating in the U.S. as of mid-2010, a 16 percent increase from 2009.

Source: U.S. D. A.

Germ Hot Spots

The kitchen may be a popular place for families to get together to prepare and enjoy their meals, but a recent study by NSF International finds that it may also be the “germiest” room in the home. That’s because coliform bacteria can be found on many household surfaces in the kitchen, including dish sponges and rags, kitchen sinks, countertops and cutting boards. The sources of coliform can be traced to food items, such as unwashed produce, raw meat and poultry. The bacteria also can be brought in through improperly washed hands or through contact with household pets, including pet toys and dishes.

Dish sponges are the top hot spot for germs, according to the study. “Sponges pick up bacteria during the cleaning process and are typically not properly – or regularly – sanitized before their next use,” explains Dr. Rob Donofrio, Director of Microbiology at NSF International. “Additionally, sponges are often wet and left in damp areas in or near the sink, providing optimal conditions for germ growth. They also have many nooks and crannies which can be great places for germs to multiply.”

To clean, place wet sponges in the microwave for two minutes every day and replace every two weeks or more as needed. Or better yet, use dishcloths, towels or rags, which can be sanitized by washing them in hot water with bleach. Replace dishcloths every one or two days.

Another hot spot for germs — the kitchen sink – should be washed and disinfected at least once or twice a week with a disinfecting cleanser. Sanitize kitchen drains and disposals monthly by pouring a solution of one teaspoon household bleach in one quart of water down the drain. Wash kitchen sink strainers in the dishwasher weekly.

Knowing where the germ hot spots are in your home and taking steps to clean and sanitize them properly will help protect you and your family from harmful bacteria.

Did You Know?

An average ear of corn has 800 kernels in 16 rows.

Working through financial jargon with a mortgage lender can be confusing, but you can make the process easier if you clarify queries up front. Real Estate ABC and About.com offer a few tips for talking to your lender and finding what home loan best fits your needs.

Don’t be afraid to ask about the pros and cons of each type of loan — fixed-rate loans are good if you are likely to have a lower interest rate and can pay it off quickly, while an adjustable rate mortgage will fluctuate during the term of the loan. And keep in mind that the total cost of a loan includes many fees, such as the appraisal, request for credit report, inspection reports and recording fees. Sometimes these fees are negotiable, so be sure to ask your lender if there’s room for more savings.

Ask about the lender’s relationship with the financial institution they represent. The closing process moves quickly, and it’s important to have a lender who feels comfortable getting in touch with the financial institution and making changes for his or her client as often as needed. When determining a closing date on the property, it’s best to work with a lender who can guarantee funding and turnaround of the loan within 48 hours of signing the necessary paperwork to avoid delays.

The most important tip? Trust your gut when choosing a lender. If at any time you’re not comfortable with the answers given, or if the lender is vague or defensive, consider looking elsewhere.

Kitchen Cosmetics

Could your kitchen use a facelift? According to Remodeling magazine’s latest Cost vs. Value Report, the average minor kitchen remodel costs $21,695. And considering the amount of time people spend in their kitchens, it could be well worth the investment: Homeowners typically recoup about 73 percent of the cost, according to the report.

If you’re hiring contractors to do the work, make sure you do your research. Estimate how much the down payment will be (usually about a quarter of the total project cost) and be sure to discuss a schedule for the payments. Walk through and make a list of what (if anything) in the kitchen won’t be replaced during the remodel. Keep in mind that you can save thousands if your remodel allows you to keep existing wiring and plumbing in place. Still, unexpected costs do pop up, so experts recommend keeping about 20 percent more cash on hand to cover unforeseen cost overruns.

When it comes to the details, costs can certainly add up. But there are ways to get the luxe look for less. Kitchen counter materials range in price, from a top-of-the-line expensive granite surface to a wallet-friendly durable quartz countertop that has the look and feel of granite. If you do go for a luxurious countertop, consider installing a less expensive backsplash (beadboard, DIY mosaic tiles, or faux pressed tin are some options). Refacing cabinets, painting them or just replacing the knobs for a fresh look might be a more viable option than replacing the entire set.

Fast Fact

Trying to keep costs down this summer? You can lower cooling costs by up to 14 percent by raising your thermostat two degrees and using a ceiling fan.

On The Fence

Love sitting in your big backyard, but don’t like sharing your view with the neighborhood? Installing a fence can provide privacy and visual appeal.

When choosing fencing materials, be sure to consider two important factors: your region’s climate and your budget. If your region is susceptible to rough weather, such as heavy rain, hurricanes or other inclement weather, durability is key. Materials to look for include stone or brick, though these are more likely to be pricier, since they typically require professional installation. Less expensive options include plastic or vinyl, which are still fairly durable. For milder climates, something simple like a wood fence might be a cost-effective, but still efficient, solution.

If you have children or pets, safety is also an important factor. Many home and garden experts suggest installing fences around swimming pools or ponds, and around vegetable or herb gardens to keep animals from ruining your hard work. In general, gates should be childproofed, no matter where they are in your backyard.

Keep visibility in mind when choosing your materials. Paneled fences are opaque, while chain link fences offer decidedly less privacy. This also dictates how high a fence should be or if you want doorways or other openings within the fence.

Did You Know?

A recent survey shows that nearly 8 percent of American adults have been diagnosed with hay fever (allergic rhinitis).

Whether you are preparing your home for sale or simply want to spruce up your house for the summer, the experts at the Paint Quality Institute (www.paintquality.com) suggest following several simple rules to make the exterior of your home look its best.

First, prepare the surface properly. Use a long-handled brush and soap and water to scrub the surface, then use a scraper or wire brush to remove any loose, flaky or peeling paint. Sand down any rough edges and brush off any remaining dust and particles left behind.

Use top quality paint for your project. For most wood and other exterior surfaces, 100 percent acrylic latex works best because it provides a thicker, more durable film and easily conceals old paint color. And since acrylic latex lasts up to 10 years or longer, you won’t have to repaint unless you decide to change the color scheme.

Using quality brushes and equipment for the project will make the job easier and produce a more even coat and color. When working with latex paints, use brushes with synthetic bristles, ideally polyester. Brushes should be springy and well-balanced, with multiple lengths of split bristles packed tightly in a three-quarter to one-inch thickness on a standard four-inch brush.

You should also take care to paint in the right weather conditions. Choose a day with mild temperatures, ideally above 50 degrees Fahrenheit, and when the winds are light. If you must paint on a warm day, work on the shady side of the house.

With a little common sense and self-discipline, you’ll reward yourself with a beautiful, professional-looking paint job that will last for years.

Final Walk-Through

Several weeks or months can pass between the day you put an offer on a house and the day you take possession of it. In between a lot can happen that can affect the condition of the property, such as a leaky roof, a dripping faucet or stains on the carpet. Inspection experts at YourChicagoHomeInspector.com suggest doing a final walkthrough to assess the condition of the home before you take possession of it and make sure it is in the condition you agreed on when you signed the contract.

As you walk through the home with your agent, use a checklist as a guide to make sure everything is working properly, and note any questions you might have. Below are a few items in a typical checklist, but it also covers the roof, gutters, doors and windows, floors, basement and attic.

Plumbing — Flush all toilets and check for leaks. Do they keep running after they flush? Run the sink and shower faucets and check for proper drainage. Also check for hot water and water pressure.

Electrical — Make sure the utilities are on, especially if the home has been vacant for some time. Operate all lights, switches and ceiling fans. Also test the smoke alarms, and check the kitchen appliances.

Heating and air conditioning — Use the thermostat to operate the heating and cooling system. Check for heat and cool air at all registers.

General — Open and close windows so they operate properly, and check for broken glass. Look for stains on the ceiling that might indicate a leaky roof.

fast fact

There are seven species of cicadas — four with 13-year life cycles and three with 17-year cycles.

Source: www.Magicicada.org

Americans Power Down

While more Americans are taking steps to reduce their energy consumption and save money, they may not see any real savings in their energy bills for a long time, according to a recent survey by The Shelton Group, an advertising and research agency. Nine out of 10 people surveyed say they changed their behavior to save more energy in 2010 up from 61 percent in 2009. Those who unplug chargers and other electronics when not in use increased from 33 percent in 2009 to 56 percent in 2010.

The most popular changes include replacing incandescent bulbs with CFLs (more energy-efficient compact fluorescent lamp bulbs), adding sealing, caulking or weather-stripping, purchasing Energy Star appliances and adding insulation. Nearly one in four say the most difficult change they made was the purchase of Energy Star appliances.

Despite efforts to cut back on energy consumption and save costs, about 30 percent of those surveyed say their energy bills have risen. The higher bills can be attributed to three factors: rising utility rates, an increase in popularity of various energy-hungry electronic devices, such as iPods, smart phones, flat-screen TVs and computers, and consumers believing they can use more energy because they made energy-efficient improvements. However, 44 percent believe they need to make more improvements to begin seeing any savings.

“This isn’t an easy process,” says Suzanne Shelton, president of the Shelton Group. “Doing one or even two things isn’t going to get consumers the savings they expect. Making homes energy efficient is a multi-step process.”

Did You Know?

To make your own scouring cleanser, combine one-quarter cup of baking soda with one tablespoon of liquid detergent, then add enough white distilled vinegar to create a thick and creamy texture.

Source: www.VinegarTips.com