New Rules and Policies Open up Condo Market to More FHA Financing
Have you considered purchasing a condominium unit but were scared off when someone warned you that obtaining a mortgage loan could be difficult? It seems like most real estate professionals have war stories about seemingly qualified buyers being unable to obtain financing to buy a residential condo unit. There is good news for you, in the 4th quarter of 2019, the Federal Housing Agency (FHA) instituted new rules and policies to open up the residential condominium market to more FHA insured financing.
FHA is now permitting approval of individual residential condominium units in non-qualified condominium projects. Previously the entire condominium project had to be approved in order for a buyer to obtain an FHA insured mortgage loan to buy a unit in the condominium project. In practice, only the larger condominium projects were obtaining this condominium development-wide approval, leaving buyers unable to obtain FHA insured financing on the vast majority of the condominium projects. While non-approved condominium projects have limits to the number of units which may have FHA insured financing, today even units in the smallest condominium projects may be eligible for FHA insured financing.
Additionally, FHA has loosened the eligibility requirements for mixed-use condominium projects; meaning condominium projects that include both residential and commercial units. For us in the Pittsburgh market, we see the number of buildings Downtown, in the Strip District and East Liberty being built or converted into these mixed-use condominium projects. The broadening of FHA eligibility for these type of projects is allowing those first time home-buyers and Millennials to obtain FHA insured financing to buy condominium units in areas and in projects where they want to live. Now is the time, don’t limit your wish list and settle for a property because FHA insured financing is not available. FHA has heard the calls of the market and have taken good reasonable steps to assist you in financing your dream home, even if that “dream home” is a unit in a condominium.
Contact a Lake Norman real estate agent to get started on your Lake Norman condo search: 704-907-7907
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
© Tucker Arensberg, P.C. 2020 | Attorney Advertising
Lake Norman Waterfront Condo Market Update February 2019
Lake Norman Waterfront Condo Market Update February 2019
Lake Norman Waterfront Condos & Townhomes
In February 2019 7 waterfront condos or townhomes sold in the Lake Norman area, a 133% increase from the 3 Lake Norman waterfront condos sold in January 2019. February 2019 sales figures increased 75% from February 2018 when 4 Lake Norman waterfront condos sold.
The average sales price decreased by 8.8% from $345,333 in January to $314,857 in February 2019. The February 2019 average sales price increased 34.8% from the February 2018 average sales price which was $233,500.
Average days on the market increased by 141% from 29 in January to 70 days on the market in February 2019. The February 2018 average days on the market were 17 an 312% increase in market time from one year ago.
Currently there are 36 active Lake Norman waterfront condos listed in the MLS, a 24% increase in active inventory from February. There are 8 Lake Norman waterfront condos under contract, down 47% from February. The average list price of active listings is $319,489, down 15% from last months average list price of $376,066. The lowest priced active Lake Norman waterfront condo is listed at $194,000 and the highest priced active Lake Norman waterfront condo is listed at $1,040,000. Based on this data, 2.7 months of inventory, we are currently in a seller’s market for Lake Norman waterfront condos.
Use our free listing service to see the current Lake Norman waterfront condos for sale: Lake Norman waterfront condos for sale
Stay up to date on the Lake Norman real estate market with our free market updates.
