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If I read this article correctly, I can't think of s single condo development in Northern NJ will be able to Qualify for FHA financing. Here's why:
3. Noise issues is a new concern, so any development within 1,000 feet of a highway, freeway, or heavily travelled road, 3,000 feet of a railroad, 1 mile of an airport, or 5 miles of a military airfield will become ineligible for warranties.
Know anywhere north of 78 and east of 287 where this does not apply?
4. If the property has an “unobstructed view , or is located within 2000 feet of any facility handling or storing explosive or fire prone materials, it is not insurable.
So you can't be within half mile of a gas station or be abel to see a gas station.
5. Any property located within 3000 feet of a dump, landfill, or superfund site, is ineligible.
NJ is Superfund central. I think 3/4 of the population lives within 3000 feet of some site.
8. For new developments, at least 50% of the units must be sold prior to applying for FHA warrantable status (valid presales include those with purchase agreement and lender validation of an approved loan in process)
So you have to be half sold before you can give an affordable option to people?
This is a BAD IDEA, all around. Whether you like the idea of DHA funding or not, you must admit it helps people get into housing where they would not be able to before. These moves will make condos unreachable for many people and will put home ownership out of reach for many.
If you are an owner in a new development, as I am about to become, this is scary for resale.
If you are a developer who is launching a new building in JC, UC, or anywhere in that area, this has to be downright FRIGHTENING.
The article urges us to contact our representatives. I am doing that right now.
If I read this article correctly, I can't think of s single condo development in Northern NJ will be able to Qualify for FHA financing. Here's why:
3. Noise issues is a new concern, so any development within 1,000 feet of a highway, freeway, or heavily travelled road, 3,000 feet of a railroad, 1 mile of an airport, or 5 miles of a military airfield will become ineligible for warranties.
Know anywhere north of 78 and east of 287 where this does not apply?
4. If the property has an “unobstructed view , or is located within 2000 feet of any facility handling or storing explosive or fire prone materials, it is not insurable.
So you can't be within half mile of a gas station or be abel to see a gas station.
5. Any property located within 3000 feet of a dump, landfill, or superfund site, is ineligible.
NJ is Superfund central. I think 3/4 of the population lives within 3000 feet of some site.
8. For new developments, at least 50% of the units must be sold prior to applying for FHA warrantable status (valid presales include those with purchase agreement and lender validation of an approved loan in process)
So you have to be half sold before you can give an affordable option to people?
They've lost a fortune to people being foreclosed on, so of course they are going to tighten things up. What they care about is resale value since that's how they recover the money in a foreclosure...
Quote:
This is a BAD IDEA, all around. Whether you like the idea of DHA funding or not, you must admit it helps people get into housing where they would not be able to before. These moves will make condos unreachable for many people and will put home ownership out of reach for many.
It's a GREAT IDEA, all round. I admit it helps people get into housing they can't afford and hence shouldn't be in. Which is a bad thing in and of itself.
Quote:
If you are an owner in a new development, as I am about to become, this is scary for resale.
If you are a developer who is launching a new building in JC, UC, or anywhere in that area, this has to be downright FRIGHTENING.
The article urges us to contact our representatives. I am doing that right now.
Well obviously. If you are a corn farmer the government removing tarrifs on sugar would be frightening. Get people off the government teat is a good thing, but of course those people will complain.
This is a BAD IDEA, all around. Whether you like the idea of DHA funding or not, you must admit it helps people get into housing where they would not be able to before. These moves will make condos unreachable for many people and will put home ownership out of reach for many.
If you are an owner in a new development, as I am about to become, this is scary for resale.
If you are a developer who is launching a new building in JC, UC, or anywhere in that area, this has to be downright FRIGHTENING.
The article urges us to contact our representatives. I am doing that right now.
Condo's on the most part are ridiculously overpriced in New Jersey.
I see average 1 or 2 bedroom condo's routinely priced at well over 200k which is nuts.
AS for being on the government teat, all they do is provide insurance. So I guess FDIC bank deposits are on the teat?
Also, which is worse?
A-Having the FHA insure a lot of loans where the houses get sold, people own a home, and condo prices are not crushed by bureaucracy, with the risk of 7% failure
B-FHA insures fewer loans, which ends in many condos being unsellable, resulting in crushed prices, abandoned buildings and developers going out of business and taking the jobs they provide with them. As an added bonus, urban blight spreads and many areas that could have been relatively affluent and alive return to poverty and squalor.
AS for being on the government teat, all they do is provide insurance. So I guess FDIC bank deposits are on the teat?
Yes they are. FDIC insurance means that no one cares about the loans the bamk they deposit money with is making, they just pick the highest rate taking the government subsidy that removes all the risk. So the bank's, the ones taking the most risks in particular, are on that particular teat.
Note, buyers are not the one's on the FHA teat. The sellers are.
Quote:
Also, which is worse?
A-Having the FHA insure a lot of loans where the houses get sold, people own a home, and condo prices are not crushed by bureaucracy, with the risk of 7% failure
B-FHA insures fewer loans, which ends in many condos being unsellable, resulting in crushed prices, abandoned buildings and developers going out of business and taking the jobs they provide with them. As an added bonus, urban blight spreads and many areas that could have been relatively affluent and alive return to poverty and squalor.
B. is better. Since all those steps you declare as certainties aren't in fact certain. Removing a subsidy shifts the demand curve down, so prices will fall. Sucks for the current owners, but why should they be getting a government subsidy anyway?
Prices falling is great for the buyers. Why should they pay more for their home than they are worth without the government pushing the prices up?
Can anyone clarify if this applys to TOWNHOUSES as well as condos... and while we are on that subject does anyone have a clearcut definition of a condo vs. a townhouse....?
We just put a bid on a property in Timber Hollow in East Brunswick, NJ.... one floor unit, private outdoor enterance, 2 bedroom 1 bath, private enclosed back yard.... and I have heard it referred to as both a condo AND a townhouse. So now I am rather confused as well as concerned....
If I read this article correctly, I can't think of s single condo development in Northern NJ will be able to Qualify for FHA financing. Here's why:
3. Noise issues is a new concern, so any development within 1,000 feet of a highway, freeway, or heavily travelled road, 3,000 feet of a railroad, 1 mile of an airport, or 5 miles of a military airfield will become ineligible for warranties.
Know anywhere north of 78 and east of 287 where this does not apply?
4. If the property has an “unobstructed view , or is located within 2000 feet of any facility handling or storing explosive or fire prone materials, it is not insurable.
So you can't be within half mile of a gas station or be abel to see a gas station.
5. Any property located within 3000 feet of a dump, landfill, or superfund site, is ineligible.
NJ is Superfund central. I think 3/4 of the population lives within 3000 feet of some site.
8. For new developments, at least 50% of the units must be sold prior to applying for FHA warrantable status (valid presales include those with purchase agreement and lender validation of an approved loan in process)
So you have to be half sold before you can give an affordable option to people?
This is a BAD IDEA, all around. Whether you like the idea of DHA funding or not, you must admit it helps people get into housing where they would not be able to before. These moves will make condos unreachable for many people and will put home ownership out of reach for many.
If you are an owner in a new development, as I am about to become, this is scary for resale.
If you are a developer who is launching a new building in JC, UC, or anywhere in that area, this has to be downright FRIGHTENING.
The article urges us to contact our representatives. I am doing that right now.
Every home in NJ is located within 4 miles of a superfund site.
Most homes, especially east of 287, are located with a mile or two of several superfund sites.
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