The Rula-delCarmen Report 03/21/12: Real Estate News and Trends for Nashville and Beyond
The latest edition of The Rula-delCarmen Report can be found by clicking the image below. Some of the highlights from this month’s edition include:
- February Nashville home sales increased by 33.3% from a year earlier
- Nationwide housing starts were down 1.1% in February
- Builder confidence unchanged in March
- Ninety-nine housing markets seen as improving in March
Please do not hesitate to contact John Rula (615-473-2632; john@johnrula.com) or Ben delCarmen (615-483-3138; ben@bendelcarmen.com) with any real estate questions. We are here to help!
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The Rula-delCarmen Report 11/10/11: Real Estate News and Trends for Nashville and Beyond
The latest edition of The Rula-delCarmen Report can be found in the link below. Some of the highlights from this month’s edition include:
- October Nashville home sales increased by 15.6% from a year earlier
- New-home sales rise 5.7% in September
- Improving Markets Index expands to 30 metros in November
- Remodeling activity remains slow under current economic conditions
- U.S. foreclosure activity hit 7-month high in October
Please do not hesitate to contact John Rula (615-473-2632; john@johnrula.com) or Ben delCarmen (615-483-3138; ben@bendelcarmen.com) with any real estate questions. We are here to help!
Nashville Among Top 10 College Towns For Real Estate Investing
http://www.marketwatch.com/story/top-10-real-estate-markets-in-us-college-towns-2011-08-10
Read MoreNavigating Condo Financing Waters
In the current lending environment with tighter underwriting standards and what seem like ever-changing condo approval guidelines, buyers and sellers can easily become frustrated with the condo financing process. Lenders are frequently rejecting loans not based on issues with the borrower but based on issues with the condominium project. It is certainly helpful for buyers and sellers to understand the basic condo guidelines for different financing options.
For owner-occupied properties, most buyers opt for conventional financing or FHA financing. For investor properties, most buyers opt for conventional financing as FHA financing is not available. Conventional loans require the lender to ensure the condo meets Fannie Mae/Freddie Mac guidelines. FHA loans provide for less-stringent borrower qualification standards and down payments as low as 3.5%. In order to obtain a FHA loan on a condo, the condo project must be approved by FHA. The Fannie Mae/Freddie Mac and FHA condo guidelines are essentially the same.
The basic Fannie Mae/Freddie Mac and FHA guidelines for condos are:
- No single entity may own more than 10% of the total units.
- At least 50% of the units must be owner-occupied or 2nd home.
- The annual budget must be deemed sufficient and must allocate at least 10% of total income towards reserves.
- No more than 15% of HOA dues may be delinquent.
- Additionally, FHA requires a maximum FHA concentration (the percentage of FHA loans in the project) of 30%.
There are some other guidelines relating to insurance coverage and pending litigation but they are generally not an issue with most condos. There is some room for leeway in the above guidelines for certain loans. For example, for certain owner-occupied conventional loans, the 50% owner-occupancy requirement, the delinquent HOA dues requirement, and the budget review and reserve requirement may be waived. Additionally, Fannie Mae/Freddie Mac does permit lenders to apply for guideline waivers but most lenders are reluctant to pursue this option. Recently, the biggest hurdle in the above guidelines has been the budget reserve requirement. Many condo associations, both small and large, have had to adopt the 10% reserve allocation and revise their budgets in order to facilitate financing on their units.
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Rates on 30-year fixed-rate mortgage holds at 4.5%
http://www.marketwatch.com/story/rates-on-30-year-fixed-rate-mortgage-holds-at-45-2011-06-23
Read MoreForeclosures fall to 42-month low: RealtyTrac
http://www.marketwatch.com/story/foreclosures-fall-to-42-month-low-realtytrac-2011-06-16
Read MoreWhy investing in rentals could be a good move: Market Watch
http://www.marketwatch.com/story/why-investing-in-rentals-could-be-a-good-move-2011-06-13
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