Welcome!

I am an Atlanta native and made the decision in 2007 to leave my job as an architect/urban planner to get my real estate license. This was a difficult decision but has been great since my very first day in my new career and I am really enjoying it! It is so rewarding helping people find that perfect home, and it allows me to continue to satiate my love of good architecture and great neighborhoods!

I attended Georgia Tech (GO JACKETS!!!!) which is where I met my husband. For almost a decade we lived in one of Atlanta's fabulous in-town neighborhoods in a great 1920's Craftsman bungalow with our two dogs and two cats. Following the birth of our first child, we bought a foreclosure in the west Buckhead area and fully renovated it using an FHA 203k loan, which was a fun and sometimes daunting process. And just prior to the birth of our second child, we purchased and renovated a home in downtown Historic Roswell, completing our personal tour of some of Atlanta's best neighborhoods to live in!

I decided to create this blog in order to share useful information and resources about the real estate market and home buying process, as well as hopefully bring some humor and levity to what is often a complex and intimidating process. Enjoy!!!

Tuesday, January 19, 2016

Lending regulations for condos


Thinking about buying (or selling) a condo in 2016? Here are some guidelines to determine if you will be able to secure financing (Fannie/Freddie only, for FHA the entire complex must be FHA approved) compliments of one my favorite lenders, The Moore Team.
1.  We will need a completed condo questionnaire from the HOA or management company VERY soon after going under contract. Please be sure we have a contact for that. This usually takes 2-3 weeks to get back from when we order!
2.  The project must be Established. This means 90% of the units are sold to individual purchasers, the project is 100% completed and is not subject to additional expansion or phases & control of the HOA has been turned over to unit owners.
3.  There is no current litigation in which the HOA or developer is named as a party to the litigation. (This would not include instances where the HOA or developer is solely the plaintiff in a foreclosure or for delinquent HOA dues)
4.  The project is not an “ineligible” type for conventional financing. (I.E. condo hotels, 
timeshares, houseboat, multi-family dwelling unit, legal (but non-conforming) use of land, common interest apartment or community apartment project)
5.  Commercial (non-residential) space cannot be greater than 25% of the project.
6.  At least 51% of the total units must be already sold and closed as primary residences or second homes. Foreclosure units that are currently for sale can be counted as owner occupied primary residences.
7.  No more than 15% of the unit owners are currently more than 30 days delinquent on their HOA dues.
8.  No single entity owns more than 10% of the total units in the project.
9.  HOA budget must have a line item for “replacement reserves” that equals no less than 10% of the total budget. (It is nearly impossible to approve a complex that does not have this!)
10. There are no restrictions which would limit the free transferability of title such as right of first refusal, other deed/income restrictions.
11. Having proper insurance coverage to meet Fannie/Freddie Guidelines

Posted by Alix Nadi at 1:55 PM
Labels: , ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)