need neighborhood

[sdrealtor]

FLU,
Thanks for clarifying a post I wouldnt bother to read. For the benefit of the mentally stable readers out there, there are 3 tiers of pricing for most MM condos. This is a generalization and there will always be exceptions but its a solid generalization.

The lowest is the trashed REO condos that the investors flock to. No chance for an FHA buyer and 2/2 would sell between 150 and 180K ALL CASH. Then there are the short sales which sell more than the REO’s and in the 180 to 200 range. Slight chance for FHA but probably not as some investors are chasing these also. Lastly you have the nice, upgraded traditional sales between 200 and 240k. This is where an owner occupant could get in at full retail with a 3% closing cost credit on an FHA loan (many complexes are FHA approved in MM)which should take care of just about everything.

Release the lunatic again

[bearishgurl]

[quote=flu][quote=bearishgurl]How is a buyer going to successfully ask for and receive a $3K closing-costs credit (for up-front MIP?) if condos in MM typically have cash offers from investors to consider?[/quote]Not sure what cash offers from others has to do with FHA financing specifically. If you’re arguing that the condo is multiple offers, with some being cash offers, how would your offer (with a loan) stack up versus a cash offer. Well, then that’s a good point probably…But that’s consistent with what sdr is saying when he says “Only issue is actually finding one to buy.” But I suspect once you start talking about $200k+ property, the number of “cash” buyers probably starts to dwindle a bit…

Most FHA loans I believe have a pretty generous closing credit…. At least that’s what Absolute Mortgage was advertising a few weeks back when I was generally look at rates.[/quote]

flu, in my post, I was thinking that the suggestion was to ask the sellers for a closing credit in the neighborhood of $3-$5K to help with up-front MIP and that this provision in their offer would likely be trumped by strong cash offers.

I was unaware that there were lenders out there who would extend a closing credit to new FHA mortgagees.

[quote=flu][quote=bearishgurl]birmingplumb, the *new* MIP for FHA loans is costly.[/quote]Well, of course it costs more than a traditional loan. Because the purpose of it is to extend financing to people who don’t have sufficient down and/or don’t have good enough credit. But whether it costs more than a conventional loan is irrelevant. What is relevant is after grinding through the math is if it pencils out to be lower or comparable to rent.

But all this is really a moot point, because at the way Mira Mesa inventory is looking, that’s the main problem.

If it were me, and if I could manage to stay put for 5 years at least. I would be looking to buy. That’s just me.[/quote]

Exactly, flu, the subject of MM condos here is moot. Thus, my post above. I find it idiotic that MM condos were brought up as an option for birmingplumb’s daughter and SIL in the first place because any current listings there that are in their price range are likely swarming with investor-buyers with strong cash positions (acc to Piggs “presumably `in the know'”) and the OP’s prospective buyers will likely be coming in with a low downpayment.

And as a young “blue-collar” family, they likely do not fit the profile of the “single professional” whom several Piggs have claimed here are typically attracted to and occupy MM condo units.

birmingplumb’s daughter and SIL would be much better off trying to locate a small SFR in the low-mid $200’s with a YARD and avoiding the issue of HOA dues and degree of owner-occupancy entirely, IMO. Over time, they could make an SFR far more resaleable than an older condo, IMO. Believe it or not, there are plenty of these listings out there!

birmingplumb, here are some currently listed examples not far from where your daughter and SIL currently reside:

http://www.sdlookup.com/MLS-120013220-4858_Boise_Ave_San_Diego_CA_92117

http://www.sdlookup.com/MLS-110053834-4575_Southampton_St_San_Diego_CA_92117

http://www.sdlookup.com/MLS-120025663-6637_Comstock_Ct_San_Diego_CA_92111

The first two are “short sales.” The comments indicate the first one is a “real fixer.” In perusing the limited photos, it does NOT appear to be a “fixer” except for the landscaping, IMHO. The third one is in a better location (YES, it IS better, Piggs :=]) and is a “traditional sale” with a very ample lot which needs landscaping work. The first and third one are small but could be added onto, due to lot size.

There ARE options for SFR’s in SD in the low-mid $200’s but the buyer needs to be aware than many SFR listings in this price range are situated on busy streets and have deafening fwy noise which can be heard day and night standing on the lot. I did not include those listings here.

birmingplumb, South County would work out well for your SIL’s job as the shipyards are 6 miles from West Chula Vista 91910, 3 miles from National City 91950, 5 miles from Paradise Hills 92139, 4 miles from Valencia Park 92114 and 4-5 miles from North Bay Terraces 92114. A buyer can get more for their money in a well-built SFR and even larger lot in these areas than upper Clairemont 92117 and Linda Vista 92111.

In my experience, I have found it cheaper to do a little “fix-up” work on an SFR than to waste money on monthly HOA dues, which can go up periodically as well as have costly “special assessments” required of each owner, both strictly at the whim of the HOA Board.

[an]

BG, none of those are around $150k. The cheapest one you linked to is $199k.

When you go above $200k, you can get SFR in MM too:
http://www.sdlookup.com/MLS-120021299-8660_Lepus_Rd_San_Diego_CA_92126
http://www.sdlookup.com/MLS-120017345-10333_Brookhurst_Ln_San_Diego_CA_92126
http://www.sdlookup.com/MLS-120015495-8713_Cetus_Rd_San_Diego_CA_92126

I didn’t mention SFR because there’s no SFR in MM for around $150k and there are none in Clairemont as well.

[bearishgurl]

[quote=AN]BG, none of those are around $150k. The cheapest one you linked to is $199k.

When you go above $200k, you can get SFR in MM too:
http://www.sdlookup.com/MLS-120021299-8660_Lepus_Rd_San_Diego_CA_92126
http://www.sdlookup.com/MLS-120017345-10333_Brookhurst_Ln_San_Diego_CA_92126
http://www.sdlookup.com/MLS-120015495-8713_Cetus_Rd_San_Diego_CA_92126

I didn’t mention SFR because there’s no SFR in MM for around $150k and there are none in Clairemont as well.[/quote]

I understand, AN. The OP wasn’t entirely clear on their price range for a purchase (the best thing to do is to tell them to get prequalified). He all but stated they have no problem paying $1300 mo rent and like their current location (92117). The current 30 yr fixed FHA rate is currently about 3.5% with a one-point origination fee and a 1.75% up-front MIP payment (under the new guidelines). Under the 203b program, the monthly payments will be as follows:

For a $150K purchase (likely condo):
DP $5250, Orig fee $1447.50, up-front MIP $2533.13

97.5% P&I for $144,750 mtg: $660.06
Est mo taxes for City of SD (urban): $146.25
Contents ins premium: $33.20
1.25% MIP: 150.78
HOA dues: $250-$300
Total mo pymt: $1240.29 to $1290.49

***********************************
For a $200K purchase (likely small house):
DP $7000, Orig fee $1930.00, up-front MIP $3377.50

97.5% P&I for $193,000 mtg: $880.08
Est monthly taxes for City of SD (urban): $195.00
Homeowner’s ins premium: $62.76
1.25% MIP: 201.04
Total mo pymt: $1338.88

***********************************
For a $250K purchase (larger 2-3 bdrm house)
DP $8750, Orig fee $2412.50, up-front MIP $4221.88

97.5% P&I for $241.250 mtg: $1100.10
Est monthly taxes for City of SD (urban): $210.77
Homeowner’s ins premium: $78.45
1.25% MIP: 251.30
Total mo pymt: $1640.62

***********************************
If they were able to go conventional (had a 20% down payment), they could save themselves thousands per year on monthly MIP premiums and avoid the hefty up-front MIP payment as well as the 1% origination fee and thus get far more house for the money (due to borrowing a lower amount and having a lower interest rate).

As it currently stands (with FHA financing), the smallish house that could be purchased for $195K to $205K (they’re out there, folks, and some are on larger lots) seems like the best bet for them to have mo mortgage payments in line with their current rent, IMHO. This would be better to live in with a baby than to share walls with partying singles and/or transient tenants and they wouldn’t grow out of it as quickly. If they did, they could consider a room addition in lieu of trying to again qualify for a new, larger mortgage on another house in the coming years.

Just ONE rent increase in the coming months could make their case for homeownership!

[birmingplumb]

I cannot thank you enough for all of your sound advice both now and last year as I searched for my sons apartment. He followed advice and lives in San Diego in a zip code you recommended. He is so happy.He never wants to leave San Diego, enrolled in a Art Class almost next door, got a bus card and feels better than anytime I can remember. I thank you for taking time to post a generous reply.God bless you.

[bearishgurl]

[quote=birmingplumb]I cannot thank you enough for all of your sound advice both now and last year as I searched for my sons apartment. He followed advice and lives in San Diego in a zip code you recommended. He is so happy.He never wants to leave San Diego, enrolled in a Art Class almost next door, got a bus card and feels better than anytime I can remember. I thank you for taking time to post a generous reply.God bless you.[/quote]

I just reviewed your posts to refresh my memory, birmingplumb. I’m gratified to hear your (disabled) son found a suitable unit for himself in North Park (SD). This area is well-known for catering to the disabled, both within the community and in its public transportation. Of course your son “feels better” now because the climate we have here is very conducive to the health of those persons who come here from a harsh climate (such as MI). In addition, SD residents, for the most part are friendly and accepting. So glad to hear your son is doing well, birmingplumb!

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