Harvey Realty, Inc.

Effective immediately, if a project has been previously FHA approved, the lender must certify that it has no knowledge of circumstances or conditions that might have an adverse effect on the project or cause a mortgage secured by a unit in the project to become delinquent.

Lender to Obtain a completed HOA Questionnaire to determine that the project is still in compliance with the following:

· Investor ownership: No more than 10% of the units may be owned by one investor.

· HOA Dues: No more than 15% of the total units be in arrears (no more than 30 days past due.)

· Owner Occupancy Rate: At least 50% must be owner occupied.

· FHA loan Concentration Rate: No more than 50% concentration level (for cases assigned through December 31, 2010). See the concentration level when you pull the FHA Approved Condo list.

· No Pending special assessments.

· No Pending legal action against the condominium association, or its officers.

Obtain a “walls in” coverage policy (HO-6 policy) if the master policy does not include interior unit coverage.

Affordable home prices, tax credits for home buyers, historically low interest rates, and a large number of distressed properties prompted many first-time home buyers to enter the market in 2009, according to California Association of Realtor's 2009-2010 “State of the California Housing Market” report released today.

California’s median home price hit bottom in February 2009 at $245,170. Since then, the median home price has increased steadily in month-to-month comparisons, but remained below 2008 levels throughout 2009. The annual median price is projected to increase to $280,000 in 2010 from $271,000 in 2009.

Homes priced $500,000 or less dominated the sales mix throughout 2008 and early 2009, but peaked at 85 percent in January 2009. Meanwhile, the market share of homes sold for more than $500,000 increased from 15 percent in January 2009 to 25 percent in July 2009, holding steady around that figure for the remainder of last year.

The number of homes listed for sale increased in many metropolitan areas in February.

The supply of homes available for sale in 27 major metropolitan areas at the end of February was up 4.2% from a month earlier, according to figures compiled by ZipRealty Inc., a real-estate brokerage firm based in Emeryville, Calif. The ZipRealty data cover all single-family homes, condominiums and town houses listed on local multiple-listing services in metro areas where the firm operates.

On a national basis, inventories typically rise in February from the January level as people put houses on the market in anticipation of the busy spring home-shopping season. Over the past 27 years, the average increase in February has been 3.4%, according to Ivy Zelman, chief executive of Zelman & Associates, a research firm.

Inventory Data

View Interactive

Compared with the year-earlier month, the February inventory in the 27 metro areas covered by Zip was down about 19%.

These inventory data don't capture the entire potential housing supply. Around eight million households are behind on their mortgage payments or in the often lengthy process of foreclosure. Many of those homes eventually are likely to be put on the market as banks foreclose or owners are forced to sell.