patrick.net

I'm a long time lurker, new poster.

If you go to this site:
https entp dot hud dot gov/idapp/html/condlook.cfm
Then plug in 95126, San Jose
It gives you a table with info about condo units. Scroll down to Plant 51 (it's there twice for some reason).

According to this FHA website (HUD), this condo has a "FHA Concentration" of 34.7% of 265 units, or ~92 units. This brand new condo site was "built" in 2008 and started selling in 2009. Using redfin, I count 89 past sales as of today.

DOES THIS MEAN THAT 100% OF ALL PAST UNIT SALES WERE FHA FINANCED?

Definition of terms from www dot help dot freehomeownershiphelp dot org/?p=679
FHA Concentration: FHA will display the concentration information for each
approved condominium development on the approved condominium listing, which
can be found on both FHA Connection and on the public website at www hud gov.
The concentration level will be based on case numbers assigned on units in a project; FHA will not issue new case numbers once the 30 percent concentration level (plus a small tolerance to accommodate for some fall-out) has been reached in any particular development.

I read that the limit is temporarily set to 50%, so many more FHA loans are possible. How long can HUD keep this up?

Thanks so much for the effort on the site, Patrick. This site freed my mind and wallet from the "American Dream" mantra. I will happily stay on the sidelines and watch the fireworks.

You're welcome. I'm confused about your URL formatting above for the hud website. Did the URLs look normal when you pasted them in? Maybe it's something my site is doing.

No, I assumed there would be URL blocking on my post so I edited them.

Should work with plan URLs, though I think Wordpress has some rule which holds comments for moderation if there are too many. I'm pretty sure two URLs will be OK.

In that case, here are the URLs:

https://entp.hud.gov/idapp/html/condlook.cfm
and
http://www.help.freehomeownershiphelp.org/?p=679

You know what I find interesting? We went to look before these were built, and they had a waiting list they pushed us to get on. "It will sell out quick, get in now!"

The low end was something like $489,900 at that time. The low end on the redfin sold list is more like $320,000. I liked the idea but they were getting ready to complete right at the worst 'peak' time and were therefore extremely overpriced. It seemed like the development floundered.

Are you thinking of buying or ... ? I might consider the bigger units at the price of the low end units, but who in the hell paid $595,000 for those? And, only half sold? HOA of $380?

I think to answer your question, you'd have to get more information from a title company. I think when developments like this go up, there are stipulations and such (make a number of FHA loans made available so the development can get commercial loans, for example). I don't know that the number sold gives you any insight into how many were sold with FHA loans. The numbers are probably a coincidence

You know there are several developments downtown SJ that are 1/2 sold or less, right? Seems like a risk in terms of HOA fees, and worse.

I'm renting, so I watch the condo market for comparison. I'd consider buying if the economics make sense. I'm young-ish (hence the handle) so there are plenty of reasons not to buy even if the prices were comparable to rents.

I totally agree on your prices. Is there a pool at this place? I kinda understand the factory-turned-condo vibe, but there are no balconies either from what I can tell.

It would be nice to know just how many purchases were FHA. It makes sense to me that low money down is still propping up the market.

If they really do build the high speed rail and the A's baseball stadium, there is going to be several years of construction racket over there and then lots more traffic and noise after that.

sybrib says

If they really do build the high speed rail and the A’s baseball stadium, there is going to be several years of construction racket over there and then lots more traffic and noise after that

Hopefully your employed and working between 8-5 daily, and the racket will not bother you.