Info on Condos (Portland, Westbrook, Kittery: sales, insurance, lender)

[JHB1901]

Where online can I get info on Condos that has everything on one floor. Do not want a condo that has upstairs and down. Looking in the area between Portland area to Kittery. Any and all assistance will be appreciated. Thanx.

[Northern Maine Land Man]

Be very careful with condos for a while. The government has new rules for lenders and will not lend for a condo purchase unless all of the owners are paid up and the condo association is solvent. This brings the following question in the event you want to sell in the future. How much do you trust your fellow association members?

[WhoFanMe]

Originally Posted by JHB1901

Where online can I get info on Condos that has everything on one floor. Do not want a condo that has upstairs and down. Looking in the area between Portland area to Kittery. Any and all assistance will be appreciated. Thanx.

Hello JHB,

I don't know a public website that will enable you to search by that parameter. You can search list price range, number or bedrooms/baths, vehicle storage, finished square feet, etc. and then sort through the listings and see which ones are all on one level. As an MLS Subscriber, a REALTOR can do a condo search and exclude certain styles such as "cape and townhouse," and also search by master, second and third bedroom level. Customers or clients can elect to automatically receive new listings, price and status changes or the agent can screen them to make sure they fit your other criteia before sending them. You are searching in such a wide geographic area that I would recommend working with at least two agents. As somebody who works in the Portland area, I would not be comfortable in working in an area like Wells/Ogunquit, nor would an agent in extreme Southern Maine know the Portland market.

[WhoFanMe]

Originally Posted by Northern Maine Land Man

Be very careful with condos for a while. The government has new rules for lenders and will not lend for a condo purchase unless all of the owners are paid up and the condo association is solvent. This brings the following question in the event you want to sell in the future. How much do you trust your fellow association members?

NMLM, I assume you are referring to FHA or USDA RD financing, where a buyer can obtain up to 100% financing. For conventional financing, these rules are not in place. If the association is not already approved by FHA, a lender can still get this type of financing by using the an entirely new process called Direct Endorsement Lender Review and Approval Process (DELRA). This process replaces "spot approvals." With this one time approval, a lender can get the specific condo unit approved for FHA/RD financing without the entire association being approved. I have a condo under contract in Westbrook that is not on the approved list and today the association filled out the "condo questionnaire" for the lender, who is proceeding to get their client approved in anticipation of closing this spring.

In order to be approved by FHA:

*50% of the units must be owner occupied or sold to owner who intend to occupy (for projects yet to be completed).
*Projects must be covered by liability, hazard (and if necessary) flood insurance.
*For projects under completion, 50% of the units must be sold or have a sales contract in place.
*No more than 15% of units may be in arrears with association dues (more than 30 days past due).
*A Reserve Study (every 12 months) must show that the association has “adequate funds” for capital improvements, typically 10% of the annual operating budget.
*No more than 10% of the project can be owned by one investor.


While older, establish associations can meet these thresholds, smaller and new projects, particularly former multi units converted to condos in the last few years will not. There is a website where one can see if a project is on the FHA's approval list and buying into an approved prohect would simplify things, but it is certainly possible to use these government programs to obtain financing as long as the association is somewhat solvent. Obviously consideration must be given to buying into any association, as there will come a time for re-sale. What is true in the spring of 2010 for a new buyer may be completely different by the time an owner is looking to sell. We are living in interesting times.

[JHB1901]

I should have added that along looking for a Condo between Kittery and Portland it would be in the Three to Four hundred thou. range and I would be paying cash....not take out a mortgage. This also would be for retirement purposes.

[WhoFanMe]

That's going to change things in light of the lack of hoops to jump through if you were financing. I'd still be very careful about buying into an association that wasn't well managed, as you or your loved ones will be selling this unit someday and you will want to protect the asset's value.