Why Purchasing A Condo Could Become Very Difficult
December 30th, 2010 Categories: Local Issues, Mortgage News
Lending restrictions have continued to tighten for all buyers, but no section of the market has been more affected than condos.
The majority of lenders now require that no more than 15% of condo association members be 30 days or more behind on their dues, and conventional loans require that least 25% of the units be owner occupied (not rented out). FHA is more lenient with tenant ratios allowing up to 49% non-owner occupied units. Nevertheless, the condo must me FHA approved before FHA loan will approve a loan on the dwelling.
In the past, lenders could do a quick “FHA spot check” on a unit to approve it. Now, the whole unit must be approved. Without this approval, buyer and those refinancing could be waiting a few months.
Due to these restrictions and the amount of condo owners that are delinquent on their payments, the chance of some units not already approved getting approved isn’t great. Unfortunately, this often times restricts a condo owners ability to sell their unit leaving them with them with only one option outside of walking from their home… Renting it out. However, this simply adds to the problem.
Recommendation: A condo is a wonderful option for housing so do not count it out based upon this current issue. However, before moving forward with the purchase of a condo make sure that the financials of the community are strong when you receive the condo documents, and that the tenant ratio is in balance. If you are buying a new condo, be sure to ask the sales representative if they are selling to investors (investors typically rent out their units).
View Condos For Sale In Ashburn!
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Will Loudoun Fail The Walk Score?
December 8th, 2010 Categories: Buyers, Local Issues
While doing some research, I noticed a new feature showing up in the results called a walk score. Interesting.
A walk score is a value given to a home based upon how close it is to conveniences such as grocery stores, restaurants, banks, and entertainment to judge whether or not they are close enough to walk too. The name comes from the website WalkScore which argues that living closer to these conveniences improves our health, the environment, and community involvement.
I put my current address in the system and scored a 0 out of 100! While I live 1.8 miles to the nearest shopping center and I am surrounded by trees, I couldn’t be happier about it. I was tired of living on top of every one. I actually feel more encouraged to now walk around my neighborhood and be more involved in outside activities. I didn’t get any points for this.
I put in my previous town home address which is .45 miles to the nearest shopping center and scored a 55 out of 100.
So far, I am not a fan of this being a part of our home search. I guess unless we all live inside of the beltway we will fail the walk score test…
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Does The Foreclosure Moratorium Affect Short Sales?
October 15th, 2010 Categories: Local Issues, Short Sales & Foreclosures
You have most likely heard that many banks nation wide are placing a moratorium on foreclosures for a season. While banks and the government work out the legalities and issues at hand in judicial states (Virginia is non-judicial) the question is now at hand… “Will this affect short sales.”
The answer is NO.
You see, foreclosures and short sales are two completely different processes by a bank to complete a similar outcome. However, since the short sale is initiated by the home owner and NOT the bank and does not involve a legal process, short sales will not be affected. In fact, due to the frustration this may place on those who want to be out their home quickly, we may see more short sales on the market.
Jonathan Bunn
Certified Distressed Property Expert
703-347-4110 Direct
first posted at http://www.dullesshortsales.com/?p=256
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The Chesapeake Bay Preservation Act Is Drawing A Crowd
June 1st, 2010 Categories: Local Issues, Loudoun County
The Chesapeake Bay Preservation Act was adopted in 1988 by the VA General Assembly requiring tidewater jurisdictions and water quality protections on land along waterways and wetlands. Along with this comes major government restrictions and costs that are currently not demanded of Loudoun County…
So the question remains… Why adopt it if it is not required of us? This past Monday, Loudoun citizens showed up from all over to speak out against the plan… Check out this video.
http://www.loudouni.com/video/news/2010-05-27/opinions-chesapeake-bay-preservation-act
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Will Loudoun Adopt The Chesapeake Bay Preservation Act?
April 15th, 2010 Categories: Local Issues, Loudoun County
The Chesapeake Bay Preservation Act is a government program that sets guidelines and restrictions on 84 tidewater areas that flow in to the Chesapeake. Loudoun County lies within the Potomac Watershed which drains in to the Chesapeake Bay. However, Loudoun currently has not adopted the program. There is a good chance that this is about to change which will affect an estimated 10% of Loudoun properties.
The goals of the act are as follows (taken from Loudoun.gov)
- prevent a net increase in non point source pollution from new development;
- achieve a 10 percent reduction in nonpoint source pollution from development on previously developed land: , and,
- achieve a 40 percent reduction in non point source pollution from agricultural and silvicultural (forestry) uses.
Nevertheless, these restrictions come with costs… IE (restrictions on where structures are placed on your property, longer timelines for approval processes when having work done, costs for having the county approve work).
To learn more… visit here
All information is deemed reliable but should be verified for accuracy.
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