FHA loans (actually Federal Housing Administration-insured loans) have taken a great leap in popularity since conventional lenders began limited their lending. At the time of this writing, FHA-insured loans account for 30-50% of all new condominium mortgages.
Below are some big picture thoughts to consider with respect to how community associations function in our society and how owners and industry professionals can have a hand in achieving the key objectives as I have stated them in this infographic.
In the prior Practical Application article, we showed the annually required reserves disclosures to be a powerful and easy to use planning and communication tool on their own.
“Fund your reserves above the 70% level”. That’s what you thought I would say, because our industry has been telling you that for years, right? The answer is deeper than that.
In our October newsletter we looked at the question of which funding plan methodology to use: “Straight Line” or “Cash Flow”.
In our June newsletter we looked at the decision points for which components are deemed appropriate within the reserve study versus those factored in the operating budget.
