Inside San Francisco Real Estate

Trends, tips & insights on San Francisco Real Estate

Archive for the ‘FHA’ Category

« Previous Entries

The Latest List of FHA-Approved Condo Buildings in San Francisco

Posted by insidesfre on March 6, 2010

The list of FHA-approved condo buildings isn’t a long one. So if you’re looking for a condo and are planning to use an FHA loan with a small down payment, you’ll be limited to a small selection. Many buildings’ FHA approval expired last Fall, so condo properties have to renew their approval on a regular basis now. And keep in mind that certain restrictions apply; some lenders won’t lend if there is already an owner with an FHA loan in the building, for example. Or a minimum number of units have to be owner occupied. It’s best to run the building details past your lender before you submit an offer, to make sure a purchase is possible for you. It’s also important to note the amount of the homeowners association (HOA) dues, which are very high in some of these properties (BLU, Soma Grand).

Another caveat—many of the buildings with current approval are sold out or close to it. So future purchases in the buildings will depend on resales and whether lenders will allow FHA loans given current restrictions. Easiest course of action is to have your agent do a survey of the buildings in which you’re interested to see if there’s a unit that would work for you.

Here’s the most current list of buildings that have FHA approval:

1151 Sutter

555 Bartlett

631 Folsom (BLU)

766 Harrison (Cubix)

901 Bush

942 Market

Arterra

Candlestick Cove (South SF)

McAllister Mews

Mosaica (601 Alabama)

Museum Plaza (300 Third St)

Sutter Heights

Symphony Towers (750 Van Ness)

The Artani (818 Van Ness)

Esprit Park (900 Minnesota)

The Montgomery (74 New Montgomery)

Soma Grand

Union

Posted in FHA, Home Buyer Tips | Tagged: | Leave a Comment »

A Look Inside the Mission’s Newest Development: 555 Bartlett

Posted by insidesfre on January 15, 2010

I attended a friends and neighbors party at the Mission’s new 555 Bartlett last night. The building isn’t quite complete, but it’s pretty obvious that it will cater to what San Francisco buyers need—reasonably priced units with parking in a central, increasingly hip location.

The 58-unit development is located at the corner of Mission and Cesar Chavez and features a mix of predominantly one- and two-bedroom condos.

The developer is pricing Bartlett in a very appealing price range for new construction—and for a majority of San Francisco buyers. The one bedrooms will start in the $400,000s, and the two bedrooms will be listed in the mid-$500,000s. There are a handful of three-bedroom units in the $600,000s, and a few studios. Many of the one bedrooms, some with studies, face the 26th Street side of the project, which will be quieter. The two bedrooms face Cesar Chavez.

Here’s a look at the living room of the staged one-bedroom model, along with the kitchen—and a desk area that lies between the bedroom and bathroom:

The two-bedroom model is staged a bit more whimsically, and also includes a painted “brick wall” :

Finishes are quite nice for the price point, and include quartz countertops, Bosch gas range, microwave and dishwasher, and Kohler faucets. Most units have small balconies or decks, and are pre-wired for ceiling fans and alarm systems.

There’s also an approximately 11,000-square foot interior courtyard, bike storage, an elevator, and a Walgreens on the ground level. Parking comes with each unit, but those opting for no parking can chop $40,000 off the purchase price. HOA dues will range from $270-$350/mo.

The location is extremely convenient for downtown and Peninsula commuters. BART is three blocks north on Mission, and 280 or 101 are about two minutes away. You can also walk one block to Valencia and find yourself a stone’s throw from Pi Bar, Anthony’s Cookies, and Beretta. Or head south on Mission and hit El Rio, Blue Plate, Good Frikin’ Chicken, Emmy’s Spaghetti Shack, the Front Porch, and Safeway.

Though not yet ready to be shown to the public, 555 Bartlett will open soon. And don’t get too put off by the existing exterior colors; I’m told they are primer for the final color scheme.

555 Bartlett is also approved for FHA loans.

Let me know if you’d like to schedule an appointment before the masses get through the doors.

Posted in FHA, Mission/Potrero, New Developments | Tagged: , | 8 Comments »

Mission’s Union Gets FHA Approval

Posted by insidesfre on January 13, 2010

One of the latest condo developments to get FHA loan approval is Union, the 76-unit complex at Bryant between 19th & 20th in the Mission. The project has been on the market since last year, and is more than 50% sold, according to the sales team, and it’s now possible to buy a condo in Union with as little as 3.5% down.

Union is split into two parts: the townhomes, and the recently released brick-and-timber lofts. Price ranges for remaining townhomes are $675,000-$799,000 for two bedrooms, and $820,000-$895,000 for three bedrooms.

One-bedroom lofts range from $575,000-735,000; two bedrooms are $660,000-$755,000 and three bedrooms are listed between $795,000-$859,000. The loft units tend to be smaller than the townhomes.

Before you run out to get preapproved for an FHA loan, make sure you run the numbers and find out how much your monthly payments will be. As I’ve noted in this blog before, FHA loans let buyers purchase homes who don’t have the required 20% down payment. But be mindful of how much cash you’ll have to come up with on large loan amounts.

Posted in FHA, Home Buyer Tips, Mission/Potrero, New Developments | Tagged: , | Leave a Comment »

New FHA Condo Rules Restrict Buyers

Posted by insidesfre on December 9, 2009

New Federal Housing Administration (FHA) financing rules for condo buyers are already limiting purchases—particularly in new developments.

The FHA is now limiting the number of buyers who can obtain loans insured by the agency in one building, effective as of Monday. The rules also put limits and a lot more restrictions on loans granted to buyers purchasing units in buildings which have too many delinquent owners, poor finances and high quantities of rentals.

It’s understandable the FHA is taking these measures, because approximately 18% of loans the agency insures are either delinquent or in foreclosure. The agency’s financial cushion has dipped below the federal minimum.

Another new rule requires that at least 30% of units in new buildings be pre-sold before the agency insures any loans. The number will rise to 50% in 2011.

Buyers in San Francisco won’t be as affected by the changes in FHA policy as some other, less expensive markets will be. I think the new rules will actually be a good thing in San Francisco; our city is small and one building gone wrong can have a far-flung effect on an entire neighborhood.

Posted in FHA, Home Buyer Tips | Tagged: , | Leave a Comment »

Nob Hill Condos Target First-Time Home Buyers

Posted by insidesfre on December 8, 2009


I often get contacted by prospective buyers wondering what’s available for around $400,000 in San Francisco. Unfortunately, the options are limited and usually don’t involved parking. But if you’re looking for a highly walkable condo with luxury finishes in an affordable price range, 901 Bush Street may be for you.

A bit of background on this 38-unit building: Its owners Ellis Acted the property back in 2006. (This means they used legal means to get out of the rental business and empty the building of tenants, making it the largest property ever Ellis Acted in San Francisco.) Then came a fire and rehab. And an attempted condo conversion by the owners. The city denied the conversion—not surprisingly, since you can only convert buildings with six or fewer units. Lawsuits followed, and there was reportedly a settlement with the city that paved the way for a “special use district” that enabled the building to be considered new construction. The units then came on the market as condos.

The units were priced in the $300,000-$500,000 range. They feature high-end finishes such as Caesarstone countertops and stainless-steel appliances. Twenty-two units have sold since 2008, and sixteen have sold this year—the latter being mostly one bedrooms with an average sales price of $397,430. There are seven available now and four in contract. The owners have somehow managed to withstand the economic downturn that hit in late 2007 and got even worse in October 2008. The building is even approved for FHA financing. Monthly homeowner association dues (HOA) are $270.

Though the building history is rather unfortunate, I have to admit that 901 Bush addresses the need for housing in this price range that’s located in a walkable, transit-rich area.

Posted in Downtown, FHA, North End of Town | Tagged: , , | Leave a Comment »

Yours Truly Quoted in the NYTimes on FHA Loans in Expensive Areas

Posted by insidesfre on November 20, 2009

I had the opportunity recently to speak with New York Times reporter David Streitfeld, who was working on a story about FHA loans in high-priced cities. The piece is running today: With FHA Help, Easy Loans in Expensive Areas. (And I’m quoted!)

The upshot of the story is that there’s growing concern that FHA loans—particularly if the loan limits increase—could end up causing the next housing crisis. Streitfeld profiles three San Francisco buyers who got an FHA loan to purchase a two-unit building in Hayes Valley.

Check it out, and let me know if you have any comments at ebermingham@pacunion.com

Posted in FHA, Hayes Valley, Home Buyer Tips, Market Snapshots | Tagged: , | 2 Comments »

No More FHA Condo “Spot Approvals”

Posted by insidesfre on September 11, 2009

If you’re a buyer approved for an FHA loan, your choices are somewhat limited when it comes to condo possibilities.

The FHA was okaying condo buildings on an individual basis to add to its existing list of approved properties—until recently. From this point on, there won’t be any further spot approvals. And in October, the projects on the list will be required to apply to remain on the list.

Here’s a bulk of the approved-building lineup:
900 Minnesota (Esprit Park, just approved)
4451-4455 Mission (Mission Terrace/Excelsior border)
631 Folsom (BLU)
901 Bush (downtown)
300 Berry (The Arterra, Mission Bay)
201 Harrison (Baycrest)
115 Red Rock Way (Diamond Hghts)
1839 15th St (Dolores Plaza)
43 Ora Way (Diamond Hghts)
1235 McAllister (McAllister Mews, Western Addition)
601 Alabama (Mosaica)
829 Folsom (SoMa)
750 Van Ness (Symphony Towers)
74 New Montgomery (downtown)
1160 Mission (SoMa Grand)
364/356 Carl (Parkview Commons)

So in the end, what this means for condo buyers with FHA loans is that they will be limited to purchases within the aforementioned properties only.

Posted in FHA, Home Buyer Tips | Tagged: , | Leave a Comment »

BLU Gets FHA Approval

Posted by insidesfre on August 17, 2009

bluThe 114-unit new development that goes by the moniker BLU has officially received FHA approval. This means buyers who meet the requirements of government-backed FHA loans can purchase a unit with as little as 3.5% down.

Not a bad situation, if you can swing the monthly payments. BLU is a 21-story building at Folsom and 2nd, and features all the trappings: wraparound corner windows, gourmet kitchens, marble bathrooms, and even air conditioning.

Most units are 2BR/2BA, with the exception of the 3BR penthouse floorplan. Typical prices are in the mid-$700,000s and well into the $800,000s. One of the penthouses is on the market for about $3M.

Posted in FHA, New Developments, SoMa/S. Beach/M. Bay | Tagged: , , , , | Leave a Comment »

Sold: 2074 45th Avenue

Posted by insidesfre on July 23, 2009

2074 45thAve LR1My 3BR/1BA listing in the Outer Parkside sold on Wednesday for $673,500. List price was $668,000, and we received a total of four offers.

Good news for buyers out there: The new owners of 45th Avenue came in with 3% down and obtained an FHA loan. The transaction went through without a hitch. This is the second sale I’ve closed over the past several months that involved an FHA loan. I haven’t encountered problems yet, despite what you’d think in the current economy.

Posted in FHA, Sunset/Parkside | Tagged: , , , | Leave a Comment »

Seeking “Spot” Condos for FHA Loans

Posted by insidesfre on February 27, 2009

FHA loans are about the only ones out there these days that will let buyers put down less than 20%. In some cases, it’s possible to put down a minimum of five percent. The loan limit is soon to be $729,750.

But that’s for single-family homes, and condos within approved buildings. I wrote a previous post outlining some of these FHA-approved buildings. If you don’t see your building of interest on that list, all might not be lost.

In some cases, the FHA will approve a “spot” condo—i.e., one condo in the building—for a loan. All the condo information needs to be submitted with the loan approval application. The catch? There can only be one “spot” condo in the building. If another unit already has an FHA loan in place, you’ll be out of luck.

Posted in FHA, Home Buyer Tips, Market Snapshots | 1 Comment »

« Previous Entries