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Real estate appraisals for divorce, estate settlement, loans, property tax appeal, pre-listing and more. We cover Sacramento, Placer and Yolo County. We're professional, courteous and timely.

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Chad Focht

Common lending issues with condominiums

April 21, 2011 By Ryan Lundquist 9 Comments

Let’s look at common lender red flags you may encounter when trying to purchase a condominium. And yes, it’s Day 4 of “Condo Week” on the Sacramento Appraisal Blog.

Five potential deal-killers for condo loans:

1)  The owner-occupancy rate typically needs to be above 50% for both FHA and conventional loans.
2)  If there is pending litigation against the HOA, it could be a deal-killer for the loan.
3)  If the HOA does not have a sufficient budget or there are HOA fee delinquency rates above 15%, that’s not going to be good for your loan.
4)  If you are getting an FHA loan, make sure the condominium complex is on HUD’s approved condo list.
5)  No more than 10% of units in a complex can be owned by a single owner.

I asked Senior Mortgage Advisor Chad Focht to give us a little more insight from the trenches of his experience in condo lending.

The biggest misconception that most people have about condos is that if it’s not on FHA’s list of approved condos, there is no way to do an FHA loan with that condo. Here at Mason McDuffie we have a special department that focuses on condo lending and helping buyers and realtors navigate through the unique aspects of condos loans. When a condo isn’t approved, we can do what’s called a spot approval. The process works much like an underwriter approving a loan. We will gather all the needed documentation and look at the project to make sure it’s a healthy and successful project. The last thing that we want is one of our buyers purchasing a unit in a complex that isn’t collecting enough funds (HOA dues) to support the maintenance and repairs or isn’t putting enough money into their reserve accounts. If the condo is on the FHA approved list already, it’s actually a quick and simple process to complete the loan. Here are a few things we need to verify: 1) To make sure the complex isn’t involved in any litigation; 2) That the delinquency rate is below 15%; and 3) That there is proper insurance on the condo project. This is something we collect for everyone to make sure everything is in order. If you have any questions, call my cell at 916-798-1234, office at 916-266-4181 or connect with me on my website. 

What other condominium loan issues have you encountered? Your comments, insight and questions are welcome below.

If you have any real estate appraisal, consulting, or property tax appeal needs in the Greater Sacramento Region, contact me at 916.595.3735, by email, on our appraiser website or via Facebook. 

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Filed Under: Resources Tagged With: appraisal service in Sacramento, Chad Focht, Chad Focht loan officer, Chad Focht mortgage advisor, condominium appraiser in Sacramento, condominium guideliens for loans, condoweek, conventional loan, FHA lending issues, FHA loan, FHA loan on condominium, HOA fee delinquency rate, Home Owner's Association, HUD's approved condo list, lender red flags for condominiums, Lundquist Appraisal Company, owner occupancy rate in condominium, pending litigation against an HOA, sacramento appraisers, Sacramento area condos

The 200th video on Sacramento Real Estate Tube

November 18, 2010 By Ryan Lundquist 4 Comments

I don’t think I’ve mentioned SacTube here since March, so I figured I’d give a little shoutout since I just posted video #202 yesterday. If you didn’t know, I launched a website eight months ago called Sacramento Real Estate Tube with the goal of creating a resourceful video real estate hub for locals and the general public.

It’s been neat to see the website improve over time and it’s been great to connect with local real estate professionals too. One of the byproducts for me hosting this site is that I’ve been able to connect with some solid real estate professionals like Chad Focht, Gena Riede, and The Ostroms, as well as learn a thing or two from their videos.

Sometimes agents ask me why I run “The Tube”. Maybe it seems a little unexpected to see an appraiser spear-heading something like this. Basically the purpose of SacTube is threefold: 1) Be a non-spammy resource to the public by sharing good videos; 2) Help increase web exposure for local real estate professionals (free marketing never hurts, right?); and 3) Build strong business relationships. In all of this, I firmly believe in being authentic and genuinely resourceful and helpful. Did I mention too how relevant I think video is for conveying information too?

If you have any questions about the site or videos to share, let me know. There is zero cost to post videos. Thank you for listening to my great news.

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Filed Under: Random Stuff, Resources, Videos Tagged With: Appraisal, Appraiser, Chad Focht, Gina Riede, Lundquist Appraisal Company, Networking, Real estate videos in Sacramento, Resourcefulness, Sacramento Real Estate, Sacramento Real Estate Tube, SacTube, Steve Ostrom

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