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No Bubble Here; FHA Condo Spot Approvals

Markets Closed Today; No Bubble Here; FHA Condo Spot Approvals

FHA CONDO SPOT APPROVALS ARE BACK STARTING TOMORROW

Starting tomorrow, an entire condominium complex will no longer need to be “FHA Approved” for a buyer to use FHA financing to purchase a unit within the complex.

Buyers can now obtain what is called a “Spot Approval” to get just get a single unit “FHA approved.”

I discussed this in more detail in September – Spot Approvals Return and Spot Approvals and Reserves.

NO BUBBLE HERE

I “borrowed” the below quote from Leonard Steinberg’s excellent Compass Blog.

I love quotes like the below for a few reasons:

  1.  The speaker, Mr. Schwarzman, is a true expert with “skin in the game!” In other words, he has his own assets and reputation on the line, unlike so many other so-called experts; and
  2.  statements like the one below are tremendously comforting for the many buyers and investors who are all too afraid that we might see another correction like we saw in 2008.

This is not a bubble compared with 2006/07. That was a bubble. I said it was a bubble then, and it was. Prices now are relatively high, but there is not that frenzy that happens, because the people who manage the capital have been through the global financial crisis, and once you’ve lived through that you are not anxious for a repeat.” – Stephen Schwarzman head of Blackstone who manages $545 billion in assets. (FN)

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 310167