FHA Condo Approval Specialist: Rhode Island Real Estate, Condos and FHA

Rhode Island Real Estate, Condos and FHA

Rhode Island Real Estate, Condos and FHA

rhode island condo salesAs we continue to expand our marketing efforts outside of Connecticut, we have been able to gather MLS data for condominium sales in Rhode Island.  Despite our proximity to the state, I had very little knowledge of it having physically visited it less than a dozen times, primarily to go to the beach in Westerly.

Rhode Island is the smallest state in the United States consisting of 1,045 square miles.  It has only 39 towns and cities, the largest of which is its capital, Providence with 178,000 people.  The entire population of the state is 1,052,567 according to the 2010 census, making it the 8th least inhabited state in the US.

Interestingly, however, it has the second highest population density in the country; only New Jersey is more densely populated.  Let’s see what that means for real property values in the state...

We noticed immediately that property values are considerably higher in Rhode Island than in Connecticut.  The FHA Mortgage Limit in Rhode Island is $426,650; by comparison, in CT, it ranges from $280,600 to $357,650, except for Fairfield County, which is a whole different animal.

In addition, very few condominiums in Rhode Island are approved with FHA.  There are 731 condominiums listed in Rhode Island on the FHA Approved Condominiums List.  This means that at one time or another, 731 condominiums were approved with FHA.  However, this is not an accurate depiction because certain phased condominiums appear multiple times on the List.

Currently, there are only 80 approved in the entire state.

While having lunch last week with a pair of Rhode Island condominium attorneys, one remarked that many associations may not be educated as to the importance of obtaining an FHA approval.  I also suspect that most aren’t aware that the FHA Mortgage Limit is so high...I wasn’t.

In Connecticut, condominiums where the values of the units are north of $300,000 would derive little to no benefit of an FHA approval.  This is not the case in Rhode Island for two reasons: (1) prices are higher for comparable units and (2) the FHA mortgage loan limits are higher.

We have also noticed that it is common that the larger associations in Rhode Island are maintaining their FHA approvals.  I spoke to one property manager this week who mentioned that she makes sure that all of her communities maintain their FHA approvals.  Kudos to her for knowing the value of the approvals!

Over the next couple of weeks, I will be working to compile sales data for towns and cities in Rhode Island and compare the FHA-approved projects with those that are not on the List.  In some towns where there are only one or two that are approved, this will not be an easy task. 

In a brief scanning of condominium unit values in some of the towns, waterfront and luxury condos are fetching prices of $600,000 to over $1,000,000.  In these towns, such a comparison would not be relevant.

Top Photo Credit: (c) Can Stock Photo / eyemark Lower Photo Credit: (c) Can Stock Photo / urose

The Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA.  We have assisted nearly 200 condominiums and we can help your association.

 

ReadySetLoan is an active member of the Connecticut and New England chapters of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.

 

Please contact us with any questions regarding FHA or VA condominium project approvals.  You can email me at askeric@readysetloan.com or call me at 404-433-4565. I will be happy to answer any of your questions.

 


FHA/VA Condo Approval Specialist

404-433-4565 Cell Phone

860-644-3772 Fax Phone

eric.boucher@readysetloan.com
ready set loan condo team

 

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Comment balloon 7 commentsReadySetLoan Condo Approval Team • September 24 2014 08:38AM

Comments

Eric Boucher :  Staggering "fallout" rate for FHA-approved Condos within the State of Rhode Island .. wow.  Not surprising though ... as it reflects pretty much what I see more locally.  Just wasn't aware of the actual stat.  Very sobering ...

Gene

Posted by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience (NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656) about 4 years ago

Eric, interesting data that you have already compiled for RI.  I grew up in Providence and East Providence and even though CT and RI are  connected many things are very different between the two States.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 4 years ago

Eric

I wish you the best with the expansion of your business.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 4 years ago

Good morning Eric. Wow, you put together some really detailed information about condominiums in Rhode Island. Hopefully, not RI condo developments will choice to get FHA approved.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) about 4 years ago

Hi Gene - no question about that.  I had expected it to be about 10% of what it once was.  That is just not good.

Hi George - I haven't done the numbers in those areas yet.  I bet you would be interested to read my findings when I get to them.

Thank you Lou

Thank you Joe.  I will do my best to educate them on the benefits of an FHA approval.

Posted by ReadySetLoan Condo Approval Team, The FHA/VA Condo Project Approval Specialists (ReadySetLoan Condo Team LLC) about 4 years ago

Hi Eric.   That is incredible how few condo associations are FHA approved.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) about 4 years ago

I thought the same thing, Conrad.

Posted by ReadySetLoan Condo Approval Team, The FHA/VA Condo Project Approval Specialists (ReadySetLoan Condo Team LLC) about 4 years ago

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