Thursday, August 25, 2011

Why We Have A Housing Crisis

So I have been doing some thinking (not a lot), and had a few experiences while Jonathan and I have been trying to buy a house. Here are some things I've learned.

1. The government insures loans for first-time home buyers. These loans are known as FHA loans. Apparently you can't get one for a condo or a townhome. In other words, the government does not encourage people to buy smaller or cheaper places.

2. When I said you "can't" get an FHA loan for a condo or a townhouse, what I actually meant was you can't get one unless the condo/townhouse is on an approved list. What is this approved list? I don't know. It's difficult to find.

3. The list is difficult to find because the search functionality on the FHA website has office hours. Seriously. "Message: Your request could not be processed at this time. Please try again later.
Normal hours of operation are from 8 am to 9 pm Eastern time Monday through Friday. The time is now 12:21 AM " So forget abouttrying to find a home on the weekend. Do that stuff while you're at work (especially if you live in Hawaii or Alaska).

4. The same people who think that only single-family homes are worth subsidizing and think that websites can't run around the clock are the people in charge of the federal loan and mortgage assistance programs.

5. There is a very good reason we are in a housing crisis.


6 comments:

  1. You can find approved condos here:

    https://entp.hud.gov/idapp/html/condlook.cfm

    I had to check into this when we were thinking about buying last year. All fields are not required. Just plug in your state (and maybe your city to narrow it down) and you're off!

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  2. Also if you're working with a realtor they should really be able to help you out with this. If they know you are using an FHA loan they should only show you properties that are FHA approved (condos, townhomes or single-family). If they are showing you other things, get a new realtor!

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  3. It wasn't the realtor's fault. The seller listed the property as FHA approved.

    And we want a townhouse, not a condo. Good luck finding one that is FHA approved.

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  4. And that's the website that keeps office house. I guess the internet needs time to relax.

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  5. Townhomes are typically classified as single family homes, and thus don't need to be approved the same way a condo is. My sis just bought a townhome this year with an FHA loan, and it was treated as a single family home. If the property has a condo association then they are classified as a condo and should be on the list if they are approved (same as traditional condos).

    I'm glad you're working with a good realtor. And I'm sorry that search website is stupid. Hopefully all these small headaches will be worth it and you'll both be relaxing in your new home soon! Make sure to get a nice guest room so we can visit you!

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  6. We're not done yet. Because they accept HomePath loans so we're gonna apply for that.

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