As of December 1, the residential home inventory was bulging like the sack of toys in the back of Santa’s sleigh!

The mortgage industry meltdown has certainly made buying a home in today’s market a somewhat daunting task. Lending requirements are back to basics with a renewed emphasis on the “three C’s of credit”: credit history, capacity (your ability to pay back the loan) and collateral (the value of your property and your down payment or equity). That’s the way it used to be so that’s really a good thing. But with Fannie Mae and Freddie Mac guaranteeing the bulk of all home loans today they are going to rather extreme lengths to ensure that there are no bad loans written. Buyers face more and more demands to prove income, verify assets, show steady employment, and explain things like small bank account deposits. In addition, not only does the property being purchased have to appraise, but the property itself goes under a lot more scrutiny. Concerns about the condition and state of repair of the property often can affect getting a mortgage. The National Association of Realtors has gone on record stating lending regulations are too tight and are hurting the housing recovery. From what I see I would agree. The pendulum has swung too far. That’s the bad thing.

One housing segment that has been hurt by even more regulations are condominium complexes. In order for someone to purchase a condominium with a loan backed by Freddie or Fannie the condo association must meet some pretty stringent guidelines. So it’s not just the buyer’s credit that is checked, the condominium association’s financial picture is closely scrutinized and must be approved. For example, condo associations must have a minimum of 10% of their annual budget set aside for reserves. No more than 15% of the units can be more than 30 days delinquent on their condo fees. No more than 10% of the units can be owned by a single entity and no more than 20% of the project can be “non-residential space” such as restaurants or shops. Buyers are also required to get condo unit owners insurance and the association must have fidelity insurance if it is larger than 20 units in order to ensure that the association funds are protected. There also can be no litigation against the association with respect to structural soundness, safety, or habitability of the units.

Essentially, what this means is that if a project is not approved by Freddie or Fannie then the only way a buyer can purchase a unit is with cash or a conventional “portfolio loan” from a local bank with 20% down. As many of the buyers for condo units in our area are first time buyers and need to use FHA financing with a lower 3.5% down payment these rules really limit those buyers’ choices. Some condo associations, like Waukewan Village in Meredith NH, have taken the initiative to get their complexes approved in order to make it easier for their owners to sell should they desire. That’s pretty smart. Waukewan Village is the only association in Meredith currently approved. In Laconia Weirs Crossing, Quail Ridge, Water Street Condominiums, Beaver Pond Estates, and Meadowbrook Town Homes also have approvals. There are currently no associations approved in Belmont or Gilford although Mulberry Hill in Gilford is currently in process. HUD.gov has a page that consumers can go to and check which complexes are approved. Some lenders are given designated underwriting authority by HUD to certify that associations meet the requirements and that could certainly save buyers some time. So if you are considering a condo purchase you should check to see whether they meet with Fannie or Freddie’s approval.Your local REALTOR® would be happy to help you and answer any questions you may have.

Tweet

Two Bedroom Townhouse in Desirable Gilford, NH

2393 Lakeshore Drive

MLS # 4106194

Offered at just $184,900

If you are looking for a great primary residence or the perfect vacation home this two bedroom, 2 1/2 bath townhome could be just for you.

This property is conveniently located near local beaches, the Gunstock Mountain Resort, many restaurants, and local shopping making it the perfect place to live and play.

This home has had many recent updates including new hardwood flooring, tile, and carpets as well as a new roof and furnace. Click Here for more information. Make an appointment today to come view this nice property!

Tweet

Affordable and Nice!!

71 Annis Drive, Unit 13

MLS #4103108

Reasonably offered at only $139,000

This tastefully decorated 1212 square foot, two bedoom, one and a half,  townhome offers affordable living in one of the Lakes Region most desirable communities.

The stylish eat in kitchen is well appointed and flows nicely into the spacious living room. There is a private back deck andback yard that’s perfect for barbequing.  A large master bedroom, full bath, and a second bedroom/den are located upstairs. There is a full basement plus an over size one car garage. This townhome is the last one on the cul-de-sac making it one of the more desirable (and private) units! No surprises here! Schedule a showing soon…

Tweet

Condo living has always been a great alternative for many home buyers in the Lakes Region of NH. Many people, especially retirees, enjoy the low maintenance lifestyle that living in a condo can provide for them. Those looking for a vacation home don’t want to have to cut grass and paint the trim when they are up on weekends, they want to be out on the boat or the golf course! Others like to take advantage of the amenities that may come as an added benefit in many condo complexes. Access to the lake has always been a driving force behind many condo purchases. For many buyers, a condo with a beach access, dock space, or a mooring is much more desirable than those without. A “shared access” condo has always been a highly desirable and an affordable vacation alternative to buying a much more expensive property located directly on the water. The affordability factor is also appealing to anyone who may be just getting into the housing market. There has been an abundance of entry level type condos constructed in the Lakes Region over the past five to six years so there is a lot to choose from…

How have condo sales faired over the past few years? Well it seems that the same pain that has inflicted the single family home market has also radiated into the condo market as well, at least when it comes to the total number of sales. That dreaded yellow fever has affected many condo buyers as well! Gilford, Laconia, and Meredith had a total of 139 condo sales in 2008 and 142 sales in 2009. That is 30% off the total sales number of 200 in 2007 but down a whopping 56% from 2004.

Surprisingly though, the average sales price of condos in Laconia and Gilford have held up pretty well with Gilford posting its highest average in the last six years at $208,197 and Laconia posting a gain over last year at $193,646. The $182,481 average sales price in Meredith is down considerably from the $300k plus numbers posted in 2004 and 2007, but that is due to the majority of the sales being lower priced bank owned units at Meredith Bay Village. These units have all sold at about 60% of the tax assessed value making them pretty good deals!

As with single family homes, there are some deals out there to be had in the condo market for those buyers willing to take the plunge. Will buyers go swimming in 2010? It is anybody’s guess, but those that do will find good values and great investments in the Lakes Region.

The price of a condominium in the Lakes Region …

Click here to see rest report:

condo-sales-report.doc