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Cotton Mills Condos gets FHA approval! Thanks to Ross Miller of Miller Home Mortgages! They have just become more affordable.

       The Cotton Mill Condos in the New Orleans Warehouse District is now approved for FHA financing.  The majority of the Thanks goes to Ross Miller for getting this started for one of his clients.  The process took 3 plus months and a lots of work and paperwork by Ross Miller and the condo association management.  With the ever changing rules in financing this was no small feat.  This is now the first and only condo association in the Warehouse District that has been approved for FHA lenders.

       The first question is “what does this mean”.  This means the Cotton Mill Condos can be financed with an FHA loan which features lower down payments, lower mortgage Insurance fees, and lower credit scores.  It allows the sellers to give concessions in closing cost to reduce the cost of closing.

      The FHA interest rates are generally the same as the best Convention loans.  During the past week these have been around 5%.  This number means you pay $538 in principle and interest for each one hundred thousand you borrow.

     Maximum loan is 287,500 for the New Orleans area.  Must be owner occupied by the buyer.  The 3.5% down payment is the bug number making it more affordable to the home buyer.  This means you need a $7000 down payment for a 200k condo.  This beats the 10% to 20% needed for a conventional loan.

     The additional savings is also on the mortgage Insurance which is as much as one half the convention rate.  This is a fee for not putting down 20% and can easily be $200 per month.  This fee for FHA is worked into the loan which is even better.  

     All this means is that the Cotton Mill cost of ownership is going down for the purchasers in 2010.  The value of the units for the sellers is also going to be better over the longer term as it makes for more buyers.  This is good news for buyers and sellers in the complex. 

Cotton Mill Condos FHA Approved

      Before the financial meltdown there were many lenders that would offer low down payments on condos.  This has all changed since that time.  Even though New Orleans has not had many condo foreclosures we still live by the National Rules and suffer for markets in South Florida and Las Vegas among others that have many foreclosures.

Ross Miller Update-Cell  504-231-5105

ross@millerhomemortgage.com

05/21/2010 

     On May 11, 2010 I was able to work with the Department of Housing and Urban Development to obtain FHA lending approval for The Cotton Mill Condominium Complex located at 920 Poeyfarre St., New Orleans, La. 70130.  The complex will be eligible for up to about 80 units to obtain FHA financing for purchases or refinances.  This means any units where the loan amount will be under $287,500 is eligible for 96.5% financing.  Please send any potential clients to Miller Home Mortgage, LLC for Pre-Approvals for this complex. 

     On conventional financing for condominiums we can do 95% conventional financing on strong purchasers.  Our lenders are still doing Limited Reviews on condo complexes which makes the process much easier.  We also have mortgage insurance companies who are approving these strong borrowers as well.  Hud has recently announced that they are already at 30 days for the initial review of the condo documents.  Expect this timeframe to continue to grow as approximately 44,000 complexes need to be reapproved this year. 

     One new regulation that you should know about.  Beginning on June 1, 2010 all loans will have a second credit report run a couple of days prior to closing.  If any change in debt or debt not disclosed on the original application is present the loan can be declined or the closing can be stopped immediately.  Please advise your clients not to apply for any new credit or to charge up any current liabilities during the lending process. 

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Interest Rates 

     Interest rates are GREAT right now.  You can expect rates ranging from 4.625% to 5.0% with no points on Conforming loans and about the same on FHA and VA.  We can offer rates as low as 4.375% with 1 point on strong conventional borrowers.

 

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Eric Bouler Realtor
Gardner Realtors
Metairie - New Orleans, La. USA