FHA To Ease New Condominium Guidelines

New FHA Condominium Guidelines

What Effect Will This Have On Your Condominium Values?

For the last few months the Federal Housing Administration (FHA) has been planning to implement new guidelines that can affect how Condominiums are sold nationally. This is important because your property values could be effected substantially. So keeping informed is essential when determining if you should consider selling now or if you should sell in the future.

If your considering purchasing a Tinley Park Condominium, this is valuable information. You want to know if your property will be put into a better position to sell in the future. With the new extension on the Tax credit, purchasing now is a great idea so you can take advantage of this. Be sure to have all the facts before making any final decisions. I specialize in Tinley Park Condominiums so if you have any questions, call me directly at 815-301-7007.

The good news is they have changed some of the previous guidelines they were originally planning on implementing. Here are some of the highlights.

Spot Loan Approval Process

Originally this was going to be removed completely as of Dec. 7th 2009 which would have caused havoc on existing FHA contracts on Condominiums. They have agreed to extend this to Feb. 1st 2010. This is a date you as a condominium owner should know about. If you are selling a buying a property that is not FHA approved and will need a spot approval, please take this date into consideration and let the professionals assisting you know about it.

FHA Concentrations Of 50%

They have increased the concentration of FHA loans from 30% to 50% in complexes that follow certain stipulations. For the scope of this article we won't go into these but if you have a question, please contact me directly at 815-301-7007 and I can assist you in determining whether your Condominium fits this category. Basically what this means is that no more than 50% of the units could have been purchased as an FHA financed purchase.

Owner Occupancy Must Meet 50% Minimum

In order to qualify for an FHA purchaser, your Condominium would have to be 50% owner occupied minimum. This means if more than 50% are vacant or were sold as an investment and not a primary resident, you property would not qualify.

Since a majority of the the purchasers in todays market are seeking FHA financing, especially first time home buyers, this is essential in determining your value position in selling. Know the facts before making a costly and uneducated mistake.

To get your Tinley Park Condominium, Townhome or Home Value, go to www.TinleyParkHomeValues.com for your instant home value. You can get this in just minutes by visiting the above link.

For more information regarding the FHA Guidelines, Your Home Values, Selling or Buyer in Tinley Park, call Raymond Kennedy today at 815-301-7007.

Raymond Kennedy

Realtor - Real Estate Consultant

Tinley Park Condominium Specialist

RE/MAX Team 2000

18080 S. Wolf Rd.

Orland Park, IL 60467

Direct: 815-301-7007

Fax: 708-645-8357

Email: tinleyparkhomes@gmail.com

Website: www.TinleyParkHomeValues.com

TRUE CASE STUDY, PRICING YOUR TOWNHOME OR CONDO CORRECTLY

Case Study: July 25th 2009
Subject: Tinley Park Condo Located In The Grafton Place Subdivision

Original List Price: $179,729
Final Sold Price: $174,000
Buyer Credits: $0
Total Net Amount: $174,000
List To Sold Difference: $5729
List To Sold Ratio: 2.94%
Days On Market Until Contract: 20 Days
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Average list to sold price ratio at time of sale for like properties: 7%
Average Market Days for like properties in the area: 180 Days

As you can see the result of this sale was highly successful. Not only did we accomplish selling the property in record time we received an offer that was more than 4% above the average list to sold price ratio for like properties in the area. When I talk about like properties I am talking about basically the exact same units in the complex of Grafton Place.

I know what your next thoughts are, the property was sold for less than the other properties. This is not accurate, the property sold for exactly what the market was demanding. It sold for market value and possibly more. I have listed below what the competition sold for:

FYI: All the competitive properties are exactly the same model and location. The only difference would be the homeowners decor and the floor the condo is located.

Competitor One:
List Price Amount: $184,900
Net Sale Amount: $174,000
Days On The Market: 93 Days

Competitor Two:
List Price Amount: $214,900
Net Sale Amount: $175,000
Days On The Market: 403 Days

Competitor Three:
List Price Amount: $222,500
Net Sale Amount: $172,000
Days On The Market: 420 Days

Competitor Four:
List Price Amount: $172,000
Net Sale Amount: $189,800
Days On The Market: 45 Days

Other Competitors
There are three other properties still on the market with no contracts. One has been on the market for 334 days, the second has been on the market 53 days, and the third one has been on the market for 298 days.

Basically the lesson to be learned here is that you will not net a higher value for over listing your property but more likely you will net less and your market time will substantially increase. In a declining market like the one we are in right now, it is inevitable that your value will decrease in a matter of weeks and months. Pricing the home correctly up front will net you more money and reduce your market days. Don't make the mistake many of our competitors did in the market.

If your looking for some help on how to competitively market and price your property call me today to discuss your options. All Consultations are free of charge.

Raymond Kennedy
RE/MAX TEAM 2000
Direct: 815-301-7007
Email: TinleyParkHomes@gmail.com
www.TinleyParkHomeValues.com

Getting Your Tinley Park Condo, Townhome & Duplex Values Instantly

GET YOUR INSTANT PROPERTY VALUE
I recently developed this online resource for you to help determine what the value of your condo, townhome, duplex or single family home is worth based off of other recently sold like properties.

Click here to start evaluating you poperty value.

This site will give you important information about the recent properties sold, pictures, statistics and amenities.























You can contact me directly at (815) 301-7007 or email me at IllinoisAgent@gmail.com.

Ramond Kennedy
Tinley Park Condo Expert & Consultant
RE/MAX Team 2000

The History Of FHA & It's Importance Today

History Of FHA
Federal Housing Administration (FHA) loans has developed a negative stigma due to various guidelines and a misunderstanding of it's origins and why it is important. This was introduced back in the 1930's when home ownership was well under 50% to help our economy recover from the "Great Depression". The purpose of this was to encourage the growth of home ownership and stabilize the housing economy during tough times.

How FHA Helped Homeowners
This was designed to insure loans with low interests rates so consumers could afford to purchase homes even in difficult economic times. In the 75 year history FHA has insured more than 34 million home mortgages. When this was introduced back in the 1930's when there was a record rate of job losses and increasingly aggressive mortgage terms which it made it nearly impossible for most consumers to afford a home purchase. Hmmm, this sounds familiar,doesn't it? Through the 1970's when interest rates sky rocketed FHA helped stabilize the economy once again. Don't forget about the 1980 recession where once again FHA stabilized the economy. History repeats itself and once again we can face an economy where FHA will be needed to help stabilize our houusing market.

Making FHA A Better Option For You
As a condo association you may suffer if you can not get a FHA loan approved due to disciminatory language. Click here to learn more about how FHA affects your condos value. The next step is to help reduce the negative effects of the up and coming FHA market for those associations that are not approved. Click here to find out more on how to do this.

You can contact me directly at (815) 301-7007 or email me at IllinoisAgent@gmail.com.

Ramond Kennedy
Tinley Park Condo Expert & Consultant
RE/MAX Team 2000

Removing The Verbiage "Right Of First Refusal"

Consider Getting This Verbiage Removed From Your Condo Documentation
If your condo assocation has the language of "Right of First Refusal" than you should seriously consider coming together with other members in your building to get this amended. This typically would require an amendment to your condo documentation.

The Benefit
The main benefit of this is to increase or at least maintain the value of your building or complex. Spending a little money now will reward you down the road. FHA loans are now becoming the majority of all loans especially for first time home buyers. Condos, Townhomes and Duplexes traditionally attract first time home buyers as the target market because of size, price and low maintenance. That being said, if your condo association has the language "Right Of First Refusal" than you are eliminating a majority of the willing and able buyers that could potentially purchase a condo or unit in your association. This will reduce demand and in return devalue your property substantially. Right now this language is eating away your equity.

This image is just for illustration purposes and used to help demonstrate how your equity could be affected by eliminating buyers with FHA loans due to the decrease of demand. These are not based off any data sources and shouldn't be considered accurate loss of equity.


You can contact me directly at (815) 301-7007 or email me at IllinoisAgent@gmail.com.

Ramond Kennedy
Tinley Park Condo Expert & Consultant
RE/MAX Team 2000

FHA Approved Condos In Tinley Park

TINLEY PARK FHA APPROVED
CONDOS, TOWNHOMES AND DUPLEXES

HUD provides a list of already approved condos in various areas. I have provided their current updated list. If your condo / association is on this list you are very likely approved. I would always double check by either reading your association rules and regulations and make sure there is no language stating it has "First Right Of Refusal".

Brementowne Estates
Cambridge Place
Castlebar Condominiums
Cedar Cove
Chantilly Condominiums
Cherry Creek II
Cherry Creek South
Cherry Hill Farms / Westberry Village
Edgewater Walk / Lake Bluff Condo
Hamilton Hills II Condominium
Kirby Condominium / Town Pointe
Lakeview Condominium / Square Brementown Square
Lakeview Condominium / Lakeview - Berry Creek
Meadows Park Estates Condo
Millenium Lakes Condominium
Oak Village
Park Venture Condominium
Pine Tree Lane Condominium
Sandalwood Condo (7321 West 175th St)
Steeple Run Condominium
Tiffany Park Condominium I
Tiffany Park Condominium II
Tinley Court Condominiums
Town Pointe Condominiums
Westberry Village Condominiums
Westberry Village West Condo
Westbury Village II

Remember, just because your not on this list doesn't mean you can't sell your condo to a FHA buyer. This list is just the condos that have already been approved. To find out if your association is able to sell to an FHA buyer the first step is to contact me. I can help assist you on how to find this information out.

This information is provided by HUD.gov. It is considered very reliable but not guaranteed. Feel free to visit the site to see for yourself.


You can contact me directly at (815) 301-7007 or email me at IllinoisAgent@gmail.com.

Ramond Kennedy
Tinley Park Condo Expert & Consultant
RE/MAX Team 2000