2010 May 2nd

Why Getting your Hoboken Condo FHA Approval Will Help You Sell

Who Has 20% to Put Down?

Very few first time buyers are able to come up with the $60,000 + needed for a typical downpayment on a Hoboken condo.   FHA Spot Approvals are no longer an option.  So what is a seller to do?  Simple – get your building FHA approved!

Getting a building FHA approved is a simple process with as fast as a 7 day turnaround time, depending on the bank.FHA Approval Seal

Here are the typical questions the bank will ask.  Of course, there is more detail in the actual application:

  1. Is the Flood Insurance Coverage equal to the Building Coverage?
  2. Are at least 50% of the units owner occupied?
  3. If there is commercial space in the building does the square footage take up over 25% of the building’s total square footage?
  4. Does the budget have a line item to collect maintenance reserves (10% of the budget minimum)?
  5. Is the association a plaintiff in any litigation?
  6. Does any single entity own more than 10% of the units?
    • For projects with under 20 units does any single entity own more than 1 unit?

If the answers are acceptable, this building is likely to be eligible to get FHA approval.   You can now sell your condo to buyers who have as little as 3.5% to put down.  That opens up a whole new universe of potential buyers.  If I were a seller I would RUN to my condo board to get this done.  The cost is minimal and the benefits great.

Posted by Lori Turoff | Currently 49 Comments »

2010 Jan 25th

Which Hoboken Condos are FHA Approved?

I’m asked this question frequently.  Here is the HUD website with the answer  (the URL is https://entp.hud.gov/idapp/html/condo1.cfm):

Posted by Lori Turoff | Currently 2 Comments »

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