April 2009

This Week's Condo Deal Of the Week is my own listings at Severance Place Condominiums.  At over 1000sq feet the one bedroom starts at only $154,900, this is a huge price reduction to reflect the current market and that's not the best part.  The one bedroom includes a den big enough for an office or guest room, these condos are 100% tax abated for 7years, they come with a parking space  and storage space, and they are minutes from the hospitals and universities.  Please call me or email me if you would like more information.  These are finished and ready to go!

The lending industry continually shifts as the credit crunch moves toward the end of its 21st month, so this week I’ll forego normal market updates (rates holding at all-time record lows…) and highlight a key industry issue on tap: property appraisals.

As of May 1, the Federal Housing Finance Agency has mandated that loan officers can’t select or pay appraisers. The Home Value Code of Conduct (HVCC), as it’s called, is intended to remove conflicts of interest some feel are inherent in the loan officer/appraiser relationship.

HOW APPRAISAL RULES AFFECT TRANSACTIONS

In the coming months, industry-wide HVCC implementation means appraisals and perhaps escrow periods may take longer. Instead of the current practice of a loan officer ordering directly

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Very few condos in and around Cleveland's Hospitals offer an easy avenue to purchase for medical residents taking new positions and needing a place to live.

One of the only condos that offers financing that does not consider student loans as debt is Severance Place Condominiums.  The reason is they are FHA approved.  That also means that you could put down 3.5% and finance the rest on one of these beautiful condos.  Call me for details.

Some of this is basic and some of it is brand new (2/24/09)...I'll high-light some of the new items to be aware of and to do your due diligence on:

The condominium must meet the below criteria for Established/finished Projects:

- At least 90% of the total units have been sold and recorded, and
- Control of the HOA has been turned over to the unit owners, and
- The project or conversion is complete and not subject to additional phasing or annexation.

In addition to meeting the Established Project criteria, the condominium must meet the following eligibility requirements:

- The LTV/CLTV does not exceed 90% for Primary Residences and 75% for Second Homes.
- The Condominium Project can not exceed 7 stories.
- The project does not have common…