If a buyer is putting down less than 10%, we are required to complete a full review of the decs, by laws, budget, owner occupancy, delinquent dues, etc. Special assessments can be a deal killer too.

We actually have Fred Peet review the Decs and Bylaws now to make sure they are in compliance with Fannie/ Freddie and state guidelines.

In general, established projects have been relatively easy to approve. New construction is tough.

I have pasted some of the guidelines from the Freddie Mac lender site (allregs)…
Mortgages secured by Condominium Units in Established Condominium Projects that meet all the following requirements are eligible for sale to Freddie Mac:

(a)
Project completion requirement for Established Condominium Projects

All units, Common Elements and Amenities must be complete.

(b)
Owner-occupancy requirements for Established Condominium Projects

•
If the Borrower will occupy the Condominium Unit as a Primary Residence or second home, there is no owner-occupancy requirement for the Condominium Project

•
If the property will be used as an Investment Property, at least 51% of the total number of Condominium Units in the Condominium Project must have been conveyed to purchasers (other than the developer or a successor to the developer) who occupy their unit as a Primary Residence or second home

(c)
Project budget requirements for Established Condominium Projects

The project’s operating budget must be consistent with the nature of the project and appropriate assessments must be established to manage the project

•
There must be appropriate allocations for line items pertinent to the type and status of the Condominium Project

•
At least 10% of the operating budget must provide funding for replacement reserves for capital expenditures and deferred maintenance based on the project’s age and remaining life, and the quality and replacement cost of major Common Elements.

•
There must be adequate funding for insurance deductible amounts

(d)
Delinquent assessments for Established Condominium Projects

No more than 15% of the total number of units in a project are 30 or more days delinquent on the payment of their Homeowners Association assessments.

42.3: Ineligible projects (08/16/10)

Mortgages secured by units in any of the following types of projects are not eligible for sale to Freddie Mac:

(a)
Project subject to federal or State securities regulations

Any project that is subject to or has the potential to be subject to the rules and regulations of the U. S. Securities and Exchange Commission or similar State laws, regardless of the project type.

(b)
Hotel/Resort Projects

A Hotel/Resort Project is a project that is operated as a hotel, resort or other type of hospitality entity or that has any of the characteristics or services described in Guide Section 42.10(b).

Freddie Mac’s determination that a project is a Hotel/Resort Project is conclusive.

For further instructions on determining whether a project is a Hotel/Resort Project, see Section 42.10(b).

(c)
Project with multi-dwelling units

A project in which an owner may hold a single deed evidencing ownership of more than one dwelling unit.

(d)
Project with non-incidental commercial space

A project in which more than 20% of the total square footage of the project is used for non-residential purposes.

(e)
Common-interest apartment project

A project in which individuals have an undivided interest in a residential apartment building and land on which the building is located, and have the right of exclusive occupancy of a specific apartment unit in the building. The project or building is often owned by several owners as tenants-in-common or by a Homeowners Association.

(f)
Project with fragmented- or segmented ownership

Ownership that is limited to a specific period on a recurring basis such as the 15th week of the year, or for a limited period such as for the subsequent five years. Timeshare projects are examples of fragmented or segmented ownership.

(g)
Timeshare project

A project in which there is an arrangement under which a purchaser receives an interest in real estate and the right to use a unit or Amenities, or both, for a specified period and on a recurring basis.

(h)
Houseboat project

A project comprised of boats that have been designed or modified to be used primarily as dwelling units.

(i)
Attached Condominium Project that is legal nonconforming

An attached Condominium Project with legal non-conforming use and the jurisdiction in which the project is located does not allow the rebuilding of the improvements to current density in the event of their partial or full destruction. This restriction does not apply to Detached Condominium Projects or if the jurisdiction in which the project is located allows the rebuilding of the improvements to their current density in the event of their partial or full destruction.

(j)
Project in litigation, arbitration, mediation or other dispute

A project for which the Homeowners Association, or developer if the project has not been turned over to the unit owners, is a party to current litigation, arbitration, mediation or other dispute resolution process and the reason for the dispute involves the safety, structural soundness or habitability of the project.

(k)
Project sold with excessive Seller contributions

Any project with respect to which the builder, developer or property seller is offering contributions that may affect the value of the subject property; examples include, but are not limited to, rent-backs or leasebacks, payments of principal, interest, taxes and insurance (PITI) or Homeowners Association assessments for any period of time, and undisclosed contributions.

(l)
Project with excessive single investor concentration

Any project in which a single entity owns more than 10% of the total number of units. If the project has fewer than 10 units, any project in which a single entity owns more than one unit.

(m)
Project with fractured interest

Any project comprised of unit owners who own their own units and renters who rent or lease units from the developer or third party. This restriction does not apply to a converted project in which the unsold units are rented or leased by tenants under tenant-protection laws, and the developer or the developer’s successor will sell the units once they have been vacated.

(n)
Continuing Care Retirement Community (CCRC)

A CCRC is a residential project designed to meet the health and housing needs of seniors as their needs change over time. CCRCs are distinguished from age-restricted communities in that residents in CCRCs contract in advance for a lifetime commitment from the facility to care for them, regardless of the future health or housing needs. CCRCs may also be known as Life-Care Facilities.

(o)
Any Condominium Project that Fannie Mae has rejected

Sue Ryan

Union Bank

Very sad that Senator Bernie Sanders does not have a staff to read his email for him.

Barefoot Accountant

http://www.cpa-connecticut.com/blog/

Thanks a bunch!

Cassie Sandall

- Laura

feel free to contact me directly with question about the diner. It could be shipped abroad, but the buyer would need to cover this cost. Different states and countries have different regulations about commercial kitchens, but the kitchen available could be updated.

What is the state of the kitchen – can this be upgraded for modern use?

Can the diner be shipped aboroad?

Pike,

—- Act Locally. Connect Globally. Burlington Telecom: It’s Your Network.

_____________________

Hi *****,

thanks for the clarification. It is the intent of the family to have their children enroll in one of the schools I had listed. What is a family’s option if they do not want a child to attend one of the magnet schools?

thanks

Pike

_________________

Register the children, and the District will place them where there is space in a classroom. They may get lucky and there will be space in the grade and school they prefer, but they may not have many options. Registration started a while ago.

*****
__________________

Hi *****,

I didn’t mean to, and not sure how I offended you; and I’m not sure how not wanting children attending a school which has an emphasis in a subject matter the child has no interest in is bigoted and classist. I have not had the privilege to see the enrollment applications parents fill out to rank the order of preference of elementary schools, but I would hesitate to say that all of those parents who do not choose either of the magnate schools as their first choice should find another place to live.

Magnate schools, or at least the magnate schools I and my sister attended, are designed as an alternative to a traditional education. Not taking the time to consider the value in the decision of the parent who makes decides that a traditional education will best serve the needs of their children is in my opinion just as closed-minded and more hypocritical.

Thanks again for the information.

Pike

_________________

Well, like I said, that’s just my first reaction. You make a good point. I did interpret the desire to avoid those schools as being based upon negative stereotyping or ignorance of the real culture of the schools at least. Perhaps, as you imply, the integrated curriculum approach in our magnet schools is not for them. Point taken.

*****

Michael Blumreich
michael@plus1-media.com
[your-phone]
Pike,
My name is Micheal Blumreich and I am the Director of Online Content for FHAMortgageCenter.com, a site specializing in everything FHA mortgage and financing. I was browsing E Powered Professionals, came across your site and am contacting you in regards to your real estate page. I enjoyed the content of your site regarding your “For Buyers” page as well as the variety of listings you have. I did however notice that you don’t have a lot of content regarding mortgage and financing options for those great listings which could be problematic for first time homebuyers. A guest post from http://www.FHAMortgageCenter.com could correct that problem being as we are FHA loan specialists who could contribute valuable information concerning financing options for home buyers along the lines of FHA loans. If you are interested take a look at our site and get back to me. I can have an article to you in a couple of days and if you are not happy with it than don’t post it. I look forward to hearing from you Pike.
Thank you for your time,
Michael Blumreich

Mike is correct that I don’t have much about financing the home, I’ll have to add more content. The problem is that financing rules and regulations are changing so rapidly, or at least have this past year, any information I provide might very well be outdated by the time you read it.