Real Estate Information Archive


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Home Buyer Credit Renewal Update

by Group One Realty Team - Real Estate One

Tax Credit Update  

The United States Senate is expected to vote, later today, on a bill to extend Unemployment Insurance benefits.  This bill will contain the Dodd - Lieberman - Isakson Amendment to extend and expand the $8,000 First Time Homebuyer Tax Credit.

The Extended and Expanded Tax Credit will contain the following provisions:

Amount:                        $8,000
Eligibility:                     ALL Home BUYERS (Step-up buyers will have to have lived in their current home for SEVEN* years to be eligible)
Income Limits:              $125,000 for single filers/$225,000 for joint filers        
Time Frame:                 December 1, 2009 to April 30, 2010 plus 60 Day extension if binding   contract is in place by April 30, 2010
*The 7 year ownership requirement is designed to lower the "score" or cost of the tax credit.  This is still open to change.  The Congressional Budget Office is going to "score" the cost of 3 year and 5 year requirements.  The National Association of Realtors is continuing to push for step-up buyers to be required to be in their current home for three year period.        

Buying a Condo? Financing maybe an issue

by Group One Realty Team - Real Estate One

I wanted to give everyone an update on Condo's, both for Conventional loans and FHA loans.  For Conventional loans, nothing has changed much since spring time.  Below is a refresher of what lenders look for to determine if the condo is considered Warrantable or Non Warrantable.  A Warrantable condo allows lenders to go through our "normal channels" of financing.  A Non-Warrantable condo means that certain items are lacking with the complex.  When a condo is Non Warrantable, they do have an outlet for financing, as long as the borrower qualifies.  These are called "portfolio loans" and require higher mean credit scores, greater down payment and higher interest rate.  Basically the lender is holding the paper and not spinning it off to an investor.  I have forms or questionsaires available to help us determine what the condo community qualifies for.  Just ask me if you would like a copy. 


Warrantable Condo ALL MUST BE MET - An established project is one in which (a) at least 90 percent of the total units have been conveyed to purchasers; (b) the project is 100% complete (including ALL units and common elements); (c) the project is not subject to additional phasing or annexation AND (d) control of the homeowners association (HOA) has been turned over to the unit owners.


1. Less than 15% of the total units are delinquent in paying HOA fees

2. No litigation pending
3. Project does not permit rental - either short term or long term - of the individual units -- i.e. nightly, weekly, monthly or time shares.    There can be non owner occupied units - not to exceed 30% of the total units  
4. No commercial use

5. No hotel/condo-tel reference in the name, legal, etc.
Condo Questionnaire is required on all attached condos regardless of the LTV.
This is directly from FNMA frequently asked questions 12/08 and is in conjunction with the FNMA 08-34 Announcement.


FHA Condo's:


There has been a lot of discussion about FHA changing their guidelines on condo's.  They have now pushed back there decision until December 7th.  They have yet to decide on their guidelines and I wouldn't be surprised if it were pushed back even longer.  As a reminder, however, Site Condo's are treated as single family residences (SFR) and lenders still allow for Spot Approval's.  Ask me for an FHA Spot Approval Checklist.  All answers must be "yes" for it to qualify for an FHA loan.  Also, other conditions may apply after getting this filled out.


Basically a completed community has a much better chance of meeting the quidelines.

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