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June 15, 2019

What Are Fha-Approved Condos?

The Federal Housing Administration is the Government agency responsible for creating FHA-approved condos. Developed in 1934 by HUD (the U.S. Department of Housing and Urban Development), FHA was designed in hopes of boosting homeownership in America. The FHA does not directly offer mortgage loans, however, they do ensure a loan by private lenders.

Regardless of your fears associated with homeownership based on a low credit score, a high down payment, or other financial issues, an FHA loan may help.

Am I a Good Candidate for an FHA Loan?

The guidelines for obtaining an FHA loan is more lenient than ever before. Today, an FHA loan could be easy to qualify for if you meet these requirements.

Good candidates for FHA loans:

  • May have a low credit score.
  • Prefer a low down payment.
  • Receive a down payment as a gift.
  • Have a high debt-to-income ratio.
  • Are first-time home buyers.

What Are the FHA Condominium Requirements?

There are rigid requirements imposed by the FHA leaving the number of listings relatively small. Within this pool of available real estate, buyers receive approval and must submit paperwork before viewing any of the communities they are interested in. Then, any recommended improvements are made before the building is put on an approved list.

Here is a full list of FHA condo requirements:

  • The property must be fully built and complete.
  • Only 50% of the property space can be used for commercial purposes.
  • Only 15% of the units can have delinquent dues (no more than 60 days).
  • Only 50% of units can be investor-owned or rented.
  • At least 10% of HOA’s income must go towards a reserve account.
  • The HOA needs to have enough money in the reserve account to cover capital repairs and replacements for at least two years.
  • The board of directors does not have the power to approve or deny a lease.  
  • Property insurance must be purchased.

There may be additional requirements to ensure the property remains in good standing.

what does fha approved condos mean

What Does FHA Approved Condos Mean?

If you want to know about FHA loans or eligible condos for FHA approval, you may need to talk to a qualified professional about how FHA loans can help you. “Is my condo FHA-approved?” is also a common question for people who do not know what FHA-approved condos mean.

Here is more about Federal Housing Administration loans:

  1. Small Down Payment

FHA loans require a small down payment that may be as low as 3.5%. That ultra-low down payment makes these properties very attractive to buyers as other lenders can require up to 20% for a down payment.

  1. Low Credit Score

Even if you do not have a high credit score, the Federal Housing Administration offers flexibility. An FHA loan only requires a qualifying credit score of 500 with a 10% down payment, and 580 with a 3.5% down payment. Other properties may require a minimum score of 640 for approval.

  1. Higher Limits

While the limits of FHA loans vary, you can check the FHA mortgage limits on the HUD webpage. If you are unsure, remember that there are generally higher limits for FHA borrowers, and check with a professional.  

  1. Distressed Borrowers

Borrowers who need help may find more options with FHA loans. Many times, programs are available through the FHA for borrowers hit by economic distress.

Finding FHA-approved condos starts at home with a search on the HUD website. Go to the website, and take a look at FHA-approved condos in the search feature. Then, call a qualified real estate professional at the offices of Jeff Barchi. You can talk to a team member about FHA-approved condos available in your area, and soon you could be calling one “home.”

June 8, 2019

Exurb vs Suburb Properties – What Is the Difference?

Suburb and exurb lifestyles are not the same. While many people enjoy the pace of a city, other people take life at a slower speed calling the exurbs “home.” Today, you may need to be close to the heart of a city because it gives you easy access to employers, metro transit, schools, along with top hospitals, and a hot nightlife. Over time, your needs may change, and you could desire more space and privacy. Within the proximity of a city, you will find pollution, noise, and generally less square footage per dollar.

Understanding the differences between exurb and suburb housing is the best way to know the distinctions between the communities. When you decide to make a change in your housing area, keep these differences in mind.

5 points of exurban vs suburban housing:

1.Origin

  • Exurb

Formed around the 1950s, these dwellings surfaced in areas at the farthest parameter of the city.

  • Suburb

Developed almost a hundred years prior, these areas were formed due to address overpopulation and growth. They remain closer to the heart of a city.

  1. Access
  • Exurb

Living in the city allows you closer access to entertainment, restaurants, and top medical facilities along with noise, pollution, and sometimes crime associated with the proximity. Those who desire to be farthest from these problems in the exurbs may also lose close access to city amenities.

  • Suburb

Living at the edges of the city, you can enjoy all of the best benefits like fine dining, shopping, entertainment, theaters, 5-star spas, and other features without being too close. Many people enjoy all big cities have to offer within a short driving distance while living a suburban lifestyle.

  1. Transportation
  • Exurb

Not all cities offer excellent public transportation options, however, this is a common perk of living in the city. Exurb residents forfeit this luxury.

  • Suburb

Outside of urban areas, in the suburbs, people may not be able to gain access to city amenities without transportation of their own.

  1. Privacy
  • Exurb

Within city limits, you can count on more noise, trash, and light pollution. Over time, living with the constant presence of these types of daily stressors can cause a person to desire more distance from the city. Exurbs residents enjoy the most privacy from these stressors.

  • Suburb

Less crime, more useable land, and an overall less disruption of peace are all factors that tempt people to purchase a home in the suburbs.

exurb vs suburb

  1. Commercial
  • Exurb

People who live here do not have commercial places but may live around farm space.

  • Suburb

Homes in this area are rich in commercial features.

Is an Exurb or Suburb Right for Me?

In many areas, suburb lifestyles are the most desirable, however, if you have specific needs or plans there may be a better option. Looking at your own needs including professional and family growth, your desire to be close to the heart of your home city may change. Plan ahead of time for your housing needs by adapting a calendar for locating appropriate properties in the right areas.

Looking at available listings in suburban and exurban areas is the first step in considering how each lifestyle would affect you. Ask yourself which is the right type of lifestyle for you, and when. Then write down the most important things you will need from the city you live in. From there, you can decide which proximity of a suburb or exurb area is right for you.

Talking to a Professional About Your Needs

Think carefully about your short and long-term housing needs. Consider what your professional, personal, and family needs could be just five years from now. What about in 15 years? Comparing the difference between exurban and suburban lifestyles now can help you plan for the future of your dreams.

Talk to a professional at the offices of Jeff Barchi today to discuss our needs. Start making plans for your exurban or suburban dream house, today!

December 25, 2018

Difference Between Condo and Apartment – Which is Better?

What is the difference between a condo and an apartment? Nothing. In fact, there is really nothing but a name that separates the two, however, there are many differences between the ownership, which means that renting a condo may be different from a condominium.

Here are 3 differences between a condo and apartment explained:

Ownership

There is a BIG difference between apartments and condominiums in ownership. It may also affect a variety of different rental aspects for you as a tenant.

  • Apartment

The complex commonly only has one owner. In the complex, each renter essentially has a variation of the same lease document. This is generally a one-size-fits-all situation with a few changes in floor plans. However, for some people, this is the ideal rental opportunity.

  • Condominium

Each person can have a different lease agreement because there is no management company for each unit. Every condo can have a different owner while an owner may also have multiple condo rentals available, at one time, inside a complex.

Usually, the homeowner requires everyone to pay monthly fees in addition to the rental. They may be managed by one homeowner’s association or specific owners.

Maintenance And Care

When it comes to home repairs, on-call maintenance and professionalism, apartments and condominiums are not the same.

  • Apartment

Typically, in an apartment complex, you may have access to an on-call maintenance call line. You probably will receive a call back on your maintenance request within 24 hours and have crews at your door shortly after. That is a huge relief to people who need help fixing problems like plumbing, electrical, heating, and cooling issues. You may even be able to get the repairs done while you are at work.

apartment maintenance

  • Condominium

Unlike an apartment complex, when something goes wrong in your condominium you cannot just call the maintenance department. In a condo, you will need to contact the owner directly. They can work with you to find the right professional to get the job done, but it could take longer than in an apartment.

Also, you may expect to pay out-of-pocket and then be reimbursed.

Floor Plan

When looking at the differences between an apartment and a condominium the floor plans are something important to notice.

  • Apartment

In an apartment you can count on a basic design that may appear to be cookie-cutter, meaning that everything looks the same (or at least similar).

If you are looking for something clean, quick, and simple, this may be the ideal living situation for you. Typically, yet not always, an apartment building will accommodate a range of lifestyles, however, each unit will appear fundamentally the same.

  • Condominium

These types of rental units offer many more unique features. While you can enjoy them as an upgraded version of a typical apartment when renting a condo talk to the owner. They may inform you about different upgrades, changes, and renovations to boost the appearance of your home.  

The Difference Between a Condo and Apartment

If you are looking for a new home and are asking yourself, “What is the difference between a condo and an apartment?” Here are 3 tips to help guide you through the rental process. Use them to talk to your friends, realtors, and property managers to find the best new home for you.

November 26, 2018

What Are HUD Homes and How to Buy One?

Buying a HUD home is a simple and easy process, and it may be just the right way for you to buy a home. Today, while home values continue to fluctuate, an FHA home loan allows you to feel secure.

In fact, an FHA loan from the Housing and Urban Development (HUD) is one of the most reliable ways to take responsibility for your home buying experience. For first-time homebuyers and sellers, a HUD home loan is unlike any other you may have access to today. For that reason, if you want to negotiate real estate commissions there are a few tips to follow.

What Are HUD Homes?

HUD homes are residential properties acquired as a result of foreclosure actions. An FHA-insured mortgage commonly becomes a HUD property when the owner fails to recover from a loss on the foreclosure claim.

Different from other types of home loans, like those on a foreclosed property, HUD homes are exclusively offered to people who are able to access the auctions online. This makes the process of purchasing a HUD home different as well as how to negotiate with a realtor commission during the homebuying process. Known as an offer period, HUD homes can only be purchased during this time frame. At the end of the offer period, only the highest offer on the table will be received.

How to Buy a HUD Home

  • The Right Real Estate Agent

A real estate agent that is HUD-certified is the only type that can help you purchase one of these specialty homes. However, it is important that you find a real estate agent that you can also talk to so that you can enjoy the home buying experience.

  • HUD Registered Real Estate Inspection

A HUD registered real estate agent is the only type that can give you access to a HUD home. So, when you want to schedule an inspection on a HUD registered home, you will need to contact your agent to gain access.

  • Making an Offer

Purchasing a HUD home is unlike any other home buying process than you may have experienced before. After sending an email to the property manager, the offer is considered open, and during that time, the earnest money is not in jeopardy. Unlike with other offers, the HUD home buying process protects the earnest money while the offer is on the table.

  • Be Prepared

Documentation Ready

Buying a HUD home is best when you are prepared, so grab all of your documentation before the sale closes. That means your W2’s, pay stubs, tax returns, savings account documentation, retirement accounts, and any other documentation that you need for pre-qualification.

How to Negotiate With a Realtor Commission – The Jeff Barchi Team

HUD homes for sale are within your reach. If you are ready to become a new homebuyer or are entering the market as a seller, the FHA financing offers deals, including a $100 Down Payment Incentive Program and the Good Neighbor Next Door Program.

Let the Jeff Barchi team help you understand how to negotiate with a realtor commission, and close the deal on your dream home. Reach out to our team, today, to learn more!

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