Southern California Real Estate Video Blog with Scott Himelstein

Why Is FHA Financing so Difficult in Condo Developments?

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Back in 2010, the Department of Housing and Urban Development (HUD) started enforcing their longstanding and strict regulations on condominium approvals, which includes a rule that mandates re-certification every two years. Prior to 2010, these guidelines weren't really followed; now, however, all condo projects are held to the same level of restrictions and entire projects must be certified as a whole. This means that all condo communities must go through the same rigorous process of re-certification every two years, which basically means they have to fill out the same paperwork they did at the time of the initial approval process.

The result: condominium communities have allowed their FHA approval status to expire without going through any re-certification process. The downside to this is people who would like to use an FHA loan will not be allowed to buy in a condo development or community. This reduces the pool of potential buyers, causing condo prices to drop because there are fewer buyers in the market.

So, what is the solution now that 95% of condominiums are not FHA approved? It really comes down to urging the non-FHA condo projects to bite the bullet and become approved. This will move properties for sale by opening them up to a whole new pool of buyers - effectively increasing demand and upping prices. Home Owners Association boards of directors, with the help of their community managers, can do a lot of the work themselves and become FHA approved - or, they can hire an independent FHA approval facilitator to do the job for them. A significant increase in FHA approvals in the next few years would be a game changer in the condominium market, and we can only hope to see that happen.

If you have any questions about this or any other real estate topic, give us a call or send us an email. We would love to be your reliable resource for Porter Ranch real estate information!

Who Can You Trust When it Comes to Real Estate?

As you've probably heard, Zillow has merged with Trulia in a $3.5 billion deal. With over 140 million unique visitors in the second quarter of this year alone, the two biggest home search sites have joined forces. Data shows that 94% of people start their home search online before calling an agent. We don't have a problem with this because these sites provide some pretty good information - including tax records, sales data, schools, pictures of available homes, etc. We understand that times are changing, that people are going to use these convenient sites at some point during their real estate experience.

One thing that hasn't changed, however, is the importance of working with a real estate professional for the smoothest experience possible. Trulia and Zillow can't help you negotiate, get your offer accepted, understand the terms of your purchase agreement, or get the best deal in your transaction. If you want a personalized and successful real estate experience, you need to work with an agent - that will never change.

If you want to be as knowledgeable as possible so that the process is smooth and stress-free, don't hesitate to give us a call for any help you might need. We are always available to chat and would love to give you a hand. Thanks, and have a great week!

Fannie Mae is Changing Some of Their Guidelines- We are Here to Help!

Thanks for returning for another edition of our video blog. Today we are talking about a very important topic that's going to affect the marketplace. On August 15, Fannie Mae will change up their guidelines for those who have gone through a short sale or foreclosure. Now, instead of waiting 2 years to buy a home, which has been the case, someone who has a short sale or foreclosure will have to wait 4 years.

One of the biggest reasons we have been seeing price gains here in Southern California is because so many people that have gone through short sales or foreclosures have been able to purchase a new home relatively shortly after. Before August 15, you will have to have your DU underwriting set in stone, in addition to being in escrow. If you have to wait until after the deadline, you will be in trouble and see a lot of people in the same boat. There are exceptions, however, including extenuating circumstances that cause financial hardship. This won't be the case for a lot of people, however. People who have gone through short sales, a lot of times did so for reasons other than financial. These people will be hit hard by this Fannie Mae decision.

If you are in a situation where you have done a short sale within the last couple of years, this will really affect you - now you have to wait at least 2 years longer. We will have to see how this shakes up the marketplace.

Thanks for taking the time out of your day for us, If you have any real estate questions, please give us a call or send us a text. We would love to help you out!