What is FHA Financing, and Why does it Matter For my Condo?

FHA financing is one of the many types of government sponsored financing. Government sponsored financing works like this: 1) A Bank (like First Natick Savings) UNDERWRITES your loan. That means they examine the borrower, decides if he is credit worthy for a given MORTGAGE PROGRAM, and then give they a stamp of approval. 2) The government (or more accurately, a GSE) agrees to FUND the loan until maturity or sale. I won't go into why banks don't want to hold the loan today, but suffice to say that one of the most generous loans out there is an FHA loan.

What makes the FHA loan so generous? You need hardly any money for a down payment, typically just 3.5% (allowing you to mortgage 96.5%)! This is a great way to start your foray into housing and build equity, especially if you don't have a large down payment. It's especially attractive in market moving up, as the the extra leverage works for you.

What is special about FHA Financing and Condos?

Condos are called condos because you're part of an ASSOCIATION. When you buy a condo, you're buying the unit, but you're also entering into a SHARED OWNERSHIP of many items according to the association. Typically, roofs, windows, roads, pools, septic systems, sewer lines, even heaters can all be included.

Those items are expensive, and so a Lender needs to look at the health of the association, and not just the credit worthiness of the buyer. This is just smart lending, but it can make FHA financing more tricky for a buyer, because you don't have any control over the association, and so it's basically a "black box" for most people. You can't tell by looking at a condo if the association is good, or bad, or somewhere in the middle. But you can tell if someone has looked before.

Researching Condominium Complex and FHA suitability

There is indeed a good, quick way to see if a condo complex is FHA suitable.

FHA Condo Complex Results

That link will take you to a page which doesn't work on weekends (got to love Government Websites!!). But when it is working, you can just enter the state and town to get a good view of the condo complexes in a town that have been reviewed for FHA suitability. Here's what you might see:

Now, I've eliminated some columns to get it to fit, but I've left some important ones.  The most important is the "STATUS" field. As you can see, the two I have listed here are approved for FHA financing.  Note the far column, EXPIRATION DATE".  If you have a loan that will seek FHA financing after that date, the FHA will have to "re-examine" the condo complex, and if things have changed, they may change their minds about the suitability of the complex for FHA financing.  So these approvals are not cast in stone - they can and do change, and expire.  Also, note the "Approval Method" column.  HRAP and DELRAP indicate whether or not a condo complex has been approved for all lenders, or whether just specific lenders have FHA approval.  So in some instances, it may make sense to change underwriters to take advantage of their history with a condo complex.

Using the FHA Condo Complex Approval Guide

Hopefully, these tips will help those with FHA financing speed up their search of property. Regrettably, some of the best condo deals are going to be the complexes that are carrying more risk - and the risk may disqualify them from FHA financing. So if you want to get FHA financing for your condo, use this website to speed up the process, and stop chasing after property you can't get.

Do Good Things Today!

Matt Heisler

Northborough Housing Market Statistics Overview

Northborough is little changed from the last report. Inventory is a shade lighter, but market time is essentially a wash, and transaction volume remains unchanged. That's actually a positive coming out of the toughest months of the year, but Northborough remains a spot to look for values in Metrowest, as more than a few sellers are on for 5 months or more.

No real change either in the short-sale numbers or the foreclosure numbers. Those homes are rotating over slowly, but don't seem to be picking up steam. "Shadow inventory" remains at bay in Northborough.

Northborough Housing Market Statistics - Raw MLS Data

• There are 69 homes listed (vs. 79 in the last Northborough Real Estate Report) as For Sale.
• There have been 66 houses sold (vs. 65) in the last 6 months, and 38 homes sold in the last 3 months.
• There was an Average Market Time of 127 days for justSOLD homes.
• There is an Average Market Time of 156 days of the homes For Sale.
• The Dollars paid per Square Foot in Northborough is $173 (vs. ) $177
• There was an Average Sold Price of $346,203 for sold homes.
• Northborough has 4 properties (vs. 5) advertised as lender owned/foreclosure (typically foreclosure) .
• Northborough has 5 properties (vs. 4) advertised as short sales required by lender .
• Northborough “Hot Seller Index” (HSI): 76 Last Report: 76

*All statistics are for Single Family Houses and based on data in MLS.

Read my Explanation for Massachusetts Home Data Reports.

Our Most Accessed Posts

• How do I get the seller to pay my closing costs, and is it free money?
• What do I need to know about Radon as a Home Buyer?
• Will Solar Panels add Value to my Home and build Equity?
• Is it a bad idea to buy a house near power lines? Is it safe to buy a house near high tension powerlines?
• How do I buy a home if it has a failed septic?
• Investors can make money on foreclosures - can you?
• Should I buy a home with electric heat? How much will my heating bill be with electric heat?

About Matt Heisler

Matt Heisler is a real-estate professional and owner of this website. He has been selling homes in MA for buyers and sellers for over 20 years. He is an expert in foreclosure purchases, short-sale purchases, short-sale sales, buy and hold investing, fix and flip investing, and of course traditional residential home sales. He is happy to take questions as they pertain to real estate on Title V, Radon, Termites, Sump Pumps, Roofs, Foundations, Wells, Septic Systems, Cash-Flow, Staging, and a host of other housing issues. As a Vanderbilt University alumnus, he is proud to serve his local community.

Do Good Things Today! Matt Heisler

*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

Natick Housing Market Statistics Overview

Despite drops in many of the key statistics, Natick remains on fire for sellers, and a difficult market for buyers. Why are all the statistics down? There simply haven't been enough houses.

If we look at this list, which shows the active inventory in Natick and some surrounding towns, we see that it far and away has the fewest number of homes per person.  In fact, Natick's per capita is less than HALF of the next closest town, Holliston, and about a third of the other towns that are pretty tight.  That makes competition for those homes even greater than they would normally be, as people looking to stay in Natick pay premiums and keep new potential residents on the sidelines.  Bargain hunters, Natick is probably not where you want to be.  Now, if you're in Natick and you're thinking about selling, get that sign on your lawn ASAP!

I think most buyers are simply going to start looking in other towns where the availability is better. Natick has been too tight, too long, people will either have to go elsewhere or really keep pushing prices up, and they're pretty high already, relative to the surrounding communities.

In a similar vein, there's few foreclosures or short-sales in Natick. The good prices are making quick work of those homes.

Natick Housing Market Statistics - Raw MLS Data

• There are 57 homes (vs. 73 home in the last Natick Home Sales report) listed as For Sale.
• There have been 152 houses (vs. 200) sold in the last 6 months, and 85 homes sold in the last 3 months (vs. 97).
• There was an Average Market Time of 80 days for just SOLD homes.
• There is an Average Market Time of 140 days of the homes For Sale.
• The Dollars paid per Square Foot in Natick is $228 (vs. ) $231
• There was an Average Sold Price of $453,110 for sold homes.
• Natick has 1 properties (vs. 3) advertised as lender owned/foreclosure (typically foreclosure) .
• Natick has 3 properties (vs. 4) advertised as short sales required by lender .
• Natick “Hot Seller Index” (HSI): 136 Last Report: 137

*All statistics are for Single Family Houses and based on data in MLS.

Read my Explanation for Massachusetts Home Data Reports.

Our Most Accessed Posts

• How do I get the seller to pay my closing costs, and is it free money?
• What do I need to know about Radon as a Home Buyer?
• Will Solar Panels add Value to my Home and build Equity?
• Is it a bad idea to buy a house near power lines? Is it safe to buy a house near high tension powerlines?
• How do I buy a home if it has a failed septic?
• Investors can make money on foreclosures - can you?
• Should I buy a home with electric heat? How much will my heating bill be with electric heat?

About Matt Heisler

Matt Heisler is a real-estate professional and owner of this website. He has been selling homes in MA for buyers and sellers for over 20 years. He is an expert in foreclosure purchases, short-sale purchases, short-sale sales, buy and hold investing, fix and flip investing, and of course traditional residential home sales. He is happy to take questions as they pertain to real estate on Title V, Radon, Termites, Sump Pumps, Roofs, Foundations, Wells, Septic Systems, Cash-Flow, Staging, and a host of other housing issues. As a Vanderbilt University alumnus, he is proud to serve his local community.

Do Good Things Today! Matt Heisler

*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

Millis, MA Housing Market Statistics Overview

Millis is a small town with limited inventory. It's so small, that sometimes buyers don't know that they should keep it on their list if they are looking in that area. It certainly looks to me like the buyers have completely forgotten about Millis - sales have crept to a virtual standstill. We can see this by looking at the past three month sales - part of my "momentum" calculation - where we go from 21 sales in the last report to just 13 - a decrease of 40%. Market time rose, and sales dropped. Many times, we see this when inventory rises, but in this case, inventory has remained stable, showing there's just no new inventory, and buyers haven't been excited by what's currently on the market. One thing is clear though: Buyers should put Millis back on the list - there will be sellers willing to sharpen their pencils to get a deal done, and values may be easier to find in Millis than they have been in a while.

No foreclosures in Millis for the second straight report, and short-sales are posting an equally boring number in this report. Good!

Millis, MA Housing Market Statistics - Raw MLS Data

• There are 34 homes listed (vs. 32 in the last Millis Real Estate Report for Home Buyers and Sellers) as For Sale.
• There have been 34 houses sold (vs. 43) in the last 6 months, and 13 homes sold (vs. 21) in the last 3 months.
• There was an Average Market Time of 162 days (vs. 133) for just SOLD homes.
• There is an Average Market Time of 186 days of the homes For Sale.
• The Dollars paid per Square Foot in Millis, MA is $165 (vs. $171)
• There was an Average Sold Price of $303,535 for sold homes.
• Millis, MA has 0 properties (vs. 0) advertised as lender owned/foreclosure (typically foreclosure) .
• Millis, MA has 4 properties (vs. 3) advertised as short sales required by lender .
• Millis, MA “Hot Seller Index” (HSI): 68 Last Report: 84

*All statistics are for Single Family Houses and based on data in MLS.

Read my Explanation for Massachusetts Home Data Reports.

Our Most Accessed Posts

• How do I get the seller to pay my closing costs, and is it free money?
• What do I need to know about Radon as a Home Buyer?
• Will Solar Panels add Value to my Home and build Equity?
• Is it a bad idea to buy a house near power lines? Is it safe to buy a house near high tension powerlines?
• How do I buy a home if it has a failed septic?
• Investors can make money on foreclosures - can you?
• Should I buy a home with electric heat? How much will my heating bill be with electric heat?

About Matt Heisler

Matt Heisler is a real-estate professional and owner of this website. He has been selling homes in MA for buyers and sellers for over 20 years. He is an expert in foreclosure purchases, short-sale purchases, short-sale sales, buy and hold investing, fix and flip investing, and of course traditional residential home sales. He is happy to take questions as they pertain to real estate on Title V, Radon, Termites, Sump Pumps, Roofs, Foundations, Wells, Septic Systems, Cash-Flow, Staging, and a host of other housing issues. As a Vanderbilt University alumnus, he is proud to serve his local community.

Do Good Things Today! Matt Heisler

*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

Milford Housing Market Statistics Overview

Sales are still outpacing active properties, but at a slower rate, and looks to be heading to even, so we see a slightly cooler market in Milford in this report. It's still neutral, not favoring buyers or sellers, so that means that popular homes in popular spots are receiving lots of attention, and homes that don't offer as much location or condition features are languishing on the market until the price gets down. I'm excited that I get to start reporting on $ foot differentials from report to report, even though the moves will often be quite small. Milford moved just $1 up, showing how stable these numbers can be.  Compared to last year, the market is better for sellers - but not too much.

Both foreclosures and short-sales are up sharply, so count Milford among the towns where you're likely to be looking at lender impacted property. With 26 of the 87 homes on the market having lenders make the final decision, they're hard to avoid. Most are short-sales, but 10% are foreclosures, and those foreclosures will keep a lid on prices.

Milford Housing Market Statistics - Raw MLS Data

• There are 87 homes (vs. 99 in the last Milford Real Estate Report for Home Buyers and Sellers) listed as For Sale.
• There have been 96 houses sold (vs. 126) in the last 6 months, and 49 homes sold (vs. 61) in the last 3 months.
• There was an Average Market Time of 122 days (vs. 117) for just SOLD homes.
• There is an Average Market Time of 155 days (vs. 142) of the homes For Sale.
• The Dollars paid per Square Foot in Milford is $145 (vs. ) $144
• There was an Average Sold Price of $257,383 for sold homes.
• Milford has 9 properties advertised (vs. 6) as lender owned/foreclosure (typically foreclosure) .
• Milford has 17 properties advertised (vs. 15) as short sales required by lender .
• Milford “Hot Seller Index” (HSI): 80 Last Report: 85

*All statistics are for Single Family Houses and based on data in MLS.

Read my Explanation for Massachusetts Home Data Reports.

Our Most Accessed Posts

• How do I get the seller to pay my closing costs, and is it free money?
• What do I need to know about Radon as a Home Buyer?
• Will Solar Panels add Value to my Home and build Equity?
• Is it a bad idea to buy a house near power lines? Is it safe to buy a house near high tension powerlines?
• How do I buy a home if it has a failed septic?
• Investors can make money on foreclosures - can you?
• Should I buy a home with electric heat? How much will my heating bill be with electric heat?

About Matt Heisler

Matt Heisler is a real-estate professional and owner of this website. He has been selling homes in MA for buyers and sellers for over 20 years. He is an expert in foreclosure purchases, short-sale purchases, short-sale sales, buy and hold investing, fix and flip investing, and of course traditional residential home sales. He is happy to take questions as they pertain to real estate on Title V, Radon, Termites, Sump Pumps, Roofs, Foundations, Wells, Septic Systems, Cash-Flow, Staging, and a host of other housing issues. As a Vanderbilt University alumnus, he is proud to serve his local community.

Do Good Things Today! Matt Heisler

*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

With all the wonderful weather, I've noticed that a lot of folks are behind on their driveway clearing.  Here's some driveway and walkway tips.  I don't know if I'll get to 10, but there's some good nuggets here!

Salt, Sodium Chloride, Magnesium Chloride - I just want my steps clear!

OK, so you go to the hardware store, and there are a bevy of products.  Some are 'safe', some are 'super-heat', but what does all that mean?  It comes down to some basic elements. Well, ok, compounds, but basic stuff.  There's two types of Salt that are used in typical applications for driveways and walkways.  Regular "rock salt" which is essentially the bigger brother of the salt on your table - Sodium Chloride.  Then there's the "safe" stuff, which has Magnesium Chloride.  So what are the differences?  Well, here's a few.

Sodium Chloride:

• Safe for Driveways: Yes
• Safe for Concrete: NO
• Safe for Grass: In limited amounts
• Will Corrode Metal: Yes
• Effective at ice melting: Average
• Cost: cheap

Magnesium Chloride

• Safe for Driveways: Yes
• Safe for Concrete: Yes, much better than sodium chloride
• Safe for Grass: In higher amounts than sodium chloride or rock salt
• Will Corrode Metal: Yes, but less so
• Effective at ice melting: Better than average
• Cost: More expensive

There are also other, less common types. I've also noticed that some stores sell "mixes" of magnesium chloride and rock salt. Of course, a mix means you've still got the limitations of rock salt, but you're paying a higher price for it. If you're looking for safer, better stuff, stick with the pure magnesium chloride. Buy both, you can always mix them yourself, but then you'll know what's what. So, read your labels! Rock salt especially will "eat" through concrete the same way it does ice, through a chemical reaction with the concrete. This could create weak spots and eventually chips and cracks in your walkway or steps, necessitating it's replacement, and that can be a lot of dough! If your walk is already in trouble, sand is a super-safe alternative to any type of salt, and is pretty good at reducing slips and falls. 

When to use asphalt sealant

Some folks are asphalt sealant junkies.  I see them out there every year sealing up their driveway.  Sealant will help you extend the life of your driveway by filling in small cracks, keeping water and ice out, and keeping those cracks from getting bigger - for a while, anyway.  It won't help fill in big cracks, at least not enough to keep mother nature from doing damage.  Also, too much sealant can be a problem, both aesthetically and interfere with your driveways functioning.  Every year is almost always too often!!

When to Patch Those Cracks in Your Driveway

Patching cracks is important.  New England winters are tough on driveways, and crack repair is an often overlooked home improvement task that can extend the life of your driveway significantly.  It's pretty simple, if you close up the cracks, you keep water out.  If the water stays out, then the ice stays out, which widens the crack when the ice expands.  If the water stays out, then it doesn't settle the sand under the driveway base, which causes the ruts and the unevenness in driveways.  Get it?  Great.

Do Good Things Today!

 Matt Heisler

Sometimes, it's the little things that tell you you've found the right house.

This home had a pretty nice garden, and the buyers were also big gardeners. Not too many homes have gardens, so quirks like are sometimes the indicative that you've found the house for you. Sounds corny, but it works that way more than you'd think.

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Matt Heisler

Catching up on some past sales we executed late last year.

Here's a home in Grafton that went to a nice family relocating to Massachusetts. Welcome! Thanks for bringing the 'winterless' winter!

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Do Good Things Today!

Matt Heisler

Here's some good information, with some questions and answers underneath the chart. This chart is based on MLS sales, which is an excellent representation of what's actually happening in the marketplace. This graph shows what is being paid on a square foot basis in each town.

Questions and Answers

Q: If I pay less than the average $/square foot, am I getting a good deal?

A: Ah, if only it were so easy. $/square foot is a very useful metric - in AGGREGATE  - to compare reasonably good sized data sets. In Natick, someone paid $99 a square foot for a home on Marion St, and someone paid $335/ sq foot for new construction. Now, with both those homes so far away from the town mean, I would say it's fair to suspect that one person may have paid a little too much, and one may have gotten a good deal, but truth be told you can't tell just by looking at the numbers.

Q:So if this chart won't tell me if I'm getting a good deal, why would I care about it?

A: I think it offers insight as to what "comparable" towns are. If you were looking in Sudbury, Natick and Medfield, you might see homes that are comparable in price. If you like Sudbury's schools better than Natick schools, you might want to focus in Sudbury, as you're getting more of what you want, at the same price.

Q: What else might I do with these numbers?

A: If you were struggling to find the right house in one set of towns, it may make sense to look in the next set of towns. If you were looking in Westborough and Hopkinton, (as some would), but just can't find enough house for what you can afford, you may want to look at Ashland, Northborough and Shrewsbury - where your dollars will go a little further. Folks looking at Marlborough and Hudson may want to think if Milford or Clinton. Yes, switching towns may offer more tradeoffs, but it may just offer the insight you need to get the right house.

Q: Will these numbers change?

A: Yes, but they will change a lot slower-and bounce around a lot less - than Median Home Sales Pricing or it's cousin Average Home Sales Price - which are often talked about metrics that sends a lot of mixed signals (click the above link for why). Overall, these numbers are far more useful to me in my day-to-day than either of those other numbers.

Q: Anything Else about working with $/sq foot?

A: I have often (often!) been told that a home is too expensive based on this metric. Or that's it's a good value because of this metric. Neither of these statements often turns out to be correct. Homes with low valuations either have cosmetic or other concerns that can't be fixed (noisy highways, steep grades, common driveways), and homes with higher valuations may require little fixing, carry little risk, and require fewer capital expense items going forward. Using a town average to evaluate a home is not a good idea - but there are ways to use this metric to help you make a decision.

Q: Are there any surprises here?

A: I definitely saw some surprises. Shrewsbury is quite far West, and yet was getting good prices even vs. popular towns further East, like Holliston. That makes me think I'll be looking more in Holliston in the future, as it's possible there are some good deals right now (Holliston looks undervalued to me in this markup). Less of a surprise was Natick at the top - there's a huge demand/supply imbalance in Natick, so I would probably encourage Natick focused buyers to consider Medfield or Sudbury, so that they feel they have plenty of options, especially since I think Natick may struggle to hold on to the top spot going forward. I was also surprised that Southborough was a shade more expensive than Hopkinton or Westborough, which makes sense, as the commute for many is easier from Southborough, but the price pressures in the other town I thought may have pushed them either even or ahead of Southborough in the last few months.

Do Good Things Today!

Matt Heisler

Medfield Housing Market Statistics Overview

Medfield is where many of the other towns are at this point. Inventory is thin, and has been hanging around for a while, as Days on Market for active properties are up sharply, showing little new inventory coming on. Transactions are down, but so are inventories, and sales are still outpacing actives, showing that sellers are still pretty much in control in Medfield. There's some balance, but I don't see a lot of buyer leverage in Medfield - many sales are going through with little to none listing price negotiation.

Short-sales and foreclosures are effectively unchanged, just worth noting that there are no foreclosures on the market for the second straight report.  We really look very similar to last year's January report, except the days on market times are quite a bit higher than last year.

Medfield Housing Market Statistics - Raw MLS Data

• There are 57 homes listed as For Sale (vs. 70 in the last Medfield Real Estate Report).
• There have been 66 houses sold in the last 6 months, and 38 homes sold in the last 3 months.
• There was an Average Market Time of 172 days (vs. 120) for just SOLD homes.
• There is an Average Market Time of 174 days of the homes For Sale.
• The Dollars paid per Square Foot in Medfield is $226 (vs. 234)
• There was an Average Sold Price of $622,807 for sold homes.
• Medfield has 0 properties (vs. 0) advertised as lender owned/foreclosure (typically foreclosure) .
• Medfield, MA has 4 properties advertised (vs. 4) as short sales required by lender .
• Medfield “Hot Seller Index” (HSI): 79 Last Report: 79

*All statistics are for Single Family Houses and based on data in MLS.

Read my Explanation for Massachusetts Home Data Reports.

Our Most Accessed Posts

• How do I get the seller to pay my closing costs, and is it free money?
• What do I need to know about Radon as a Home Buyer?
• Will Solar Panels add Value to my Home and build Equity?
• Is it a bad idea to buy a house near power lines? Is it safe to buy a house near high tension powerlines?
• How do I buy a home if it has a failed septic?
• Investors can make money on foreclosures - can you?
• Should I buy a home with electric heat? How much will my heating bill be with electric heat?

About Matt Heisler

Matt Heisler is a real-estate professional and owner of this website. He has been selling homes in MA for buyers and sellers for over 20 years. He is an expert in foreclosure purchases, short-sale purchases, short-sale sales, buy and hold investing, fix and flip investing, and of course traditional residential home sales. He is happy to take questions as they pertain to real estate on Title V, Radon, Termites, Sump Pumps, Roofs, Foundations, Wells, Septic Systems, Cash-Flow, Staging, and a host of other housing issues. As a Vanderbilt University alumnus, he is proud to serve his local community.

Do Good Things Today! Matt Heisler

*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.