Tony Lewis, Summit Real Estate Santa Clarita & Aliso Viejo (RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident)

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John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

It would not be better --- spot approvals and easy guidelines resulted in massive foreclosures of condos during the recession (condos foreclosed at a far greater rate than single family homes, largely due to the fact that they become investor-saturated)

 

I don't agree with all of HuDs rules and guidance re: approval, but many of the guidelines play a significant role, especially considering HuD insures FHA loans, which are a direct pipeline to taxpayer funds.

Nov 03, 2016 11:51 AM
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Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

I think many buyers are fortunate that we have an FHA program, period....

Nov 03, 2016 09:37 PM
Rainmaker
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Yes and no, the problem is when you have a condo complex, poorly run or in debt or mostly tenant occupied, it can pose issues for home owners in the future. I am all for making it easier for these condos to apply and get approved. 

Nov 03, 2016 09:19 AM
Rainmaker
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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

This has been the case for decades, just enforced much until the most recent market crash. I don't have a problem with this requirement as a protection and John Meussner explained why better than I ever could have.

Nov 03, 2016 09:31 PM
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Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

It's good to see the insights from the lender community.  Thanks, John Meussner.

Nov 03, 2016 09:30 PM
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Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

I would prefer that the govt just got out of the real estate business.

Nov 03, 2016 05:35 PM
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

FHA or VA would be nice in the complexes that are in that price range.  I have NO idea why they make it so difficult to get the approval for the complexes though.  It's so difficult that many don't want the hastle of going through the application process.

Nov 03, 2016 01:53 PM
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Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Or VA approved...

Nov 03, 2016 01:30 PM
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Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

It cost me a sale this year.

Could have sold many to one of my buyers, if it were not for the FHA List.

FHA did just loosen up some guidelines though on owner occupancy.

Nov 03, 2016 12:19 PM
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Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

It seems you are talking about condo projects. FHA is tough on standards for a reason and it to insure it is well established and not propped up by developers that will pull out on a whim.

Nov 03, 2016 10:00 AM
Rainmaker
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Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

Single family homes are unless they are trashed. I think that condo/townhouse complexes should get on the ball but they don't.

They are supposed to be easing up on restrictions soon. Maybe a LO can chime in.

Nov 03, 2016 10:00 AM
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Mike Kelly,CRS,CIPS
The MJKelly Team - Santa Rosa, CA
"One of Sonoma County's Natural Resources"

Why? In our market FHA accounts for just 15% of all sales per month. VA even less. We are a high cost area with a very tight listing market and big time buyer demand.

 

Nov 27, 2016 10:22 PM
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Sounds good to me.

Nov 05, 2016 11:20 PM
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Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

All the homes I sell can easily quailify for FHA or VA loans.  The only concern is that offers with FHA and VA loans can seldom compete with conventional loan offers.

Nov 04, 2016 05:56 AM
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Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Tony Lewis FHA loans have loan limits so they wouldn't work for all properties. John Meussner summed it up nicely for those that do.

Nov 04, 2016 05:19 AM
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

A good lender will take care of getting a condo complex FHA approved. They even cover the costs.  

Nov 04, 2016 02:58 AM
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Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Blanket approvals are risky.

Nov 04, 2016 01:22 AM
Rainmaker
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

NAR was succesful in getting FHA to lower the requirements from 50% owner occupancy 35%. 280,000 REALTORS® sent texts to Senators to vote on HR 3700 which also improved rural housing loans.

Nov 04, 2016 12:56 AM
Rainmaker
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Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Better for whom?

Be aware that maintaining status on 'that' list comes with a cost to the community.

Another cost is transferred to owners as FHA imposes/transfers expenses to the SELLER AND the customary 'closing cost' contribution. And don't get me started on the FHA appraisal.

Would it be better? Only if you believe when you hear, "I'm from the government and I'm here to help."

 

Nov 04, 2016 12:42 AM
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Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

I'm kinda with John Meussner on this - we saw way too many condo foreclosures doing this past depression and economic fiasco

Nov 03, 2016 11:49 PM
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Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Barbara Todaro nailed this one!

Nov 03, 2016 11:30 PM
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Not sure developers want to undergo the process in many instances!

Nov 03, 2016 11:28 PM
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Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

It would be nice

Nov 03, 2016 10:57 PM
Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Wishful thinking.

Nov 03, 2016 10:46 PM
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Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

As John Meussner stated.

Nov 03, 2016 10:10 PM
Rainmaker
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Richard Weeks
Dallas, TX
REALTOR®, Broker

Better for who?

Nov 03, 2016 09:42 PM
Rainmaker
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Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

I think there is benefit to FHA only being allowed in financially sound complexes. While I do think there are way too many rules regarding financing, this one seems to protect the buyer.

Nov 03, 2016 09:17 PM
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Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

that would simplify the loan process

Nov 03, 2016 08:54 PM
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Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

Yes I agree.

Nov 03, 2016 08:46 PM
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Tony Lewis - like any 'organization', they have their own guidelines!

At times, I have seen single investor owner with more than 60% of the homes! 

FHA just wants to avoid some risks.

Nov 03, 2016 04:52 PM
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Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Never have handled or accepted a non-conventional loan in 12 years.  I avoid them whenever I have high down conventional mortgage buyers.

 

Nov 03, 2016 02:52 PM
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Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Condos?  All of the common areas and shared real estate has to be approved, which means that the whole complex has to be approved.

Nov 03, 2016 11:52 AM
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Well, it would be easier to get increasingly popular reverse mortgages through in condos.  It's interesting because it's so easy to get condos approved these days.  

Nov 03, 2016 11:47 AM
Rainmaker
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Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

I'm working with FHA approval company right now. HOA management company is in its worst behavior. 

Nov 03, 2016 11:35 AM
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I suppose but sounds boring

Nov 03, 2016 10:51 AM
Rainmaker
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FN LN
Toronto, ON

No.  Why should the FHA approve anything in our great country?

Nov 03, 2016 10:24 AM
Rainmaker
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Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Not sure I agree since these loans are insured loans by US government.  Yes, an FHA loan is a challenge but I work closely with FHA lenders to assess both the property and the buyers' potential.  

Thanks for posing the question, Tony Lewis 

Nov 03, 2016 09:19 AM