Oak Creek Villa Condos in Santa Maria, CA Can you buy a condo in Santa Maria with FHA financing? The answer is yes you can, but it is very difficult lately. Fannie Mae enacted guidelines in early 2009 which have impacted the condo market tremendously. These guidelines were meant to encourage owner occupancy and stability in condo associations but in many instances they have ended up penalizing associations not already in conformance with those guidelines and making it all but impossible for them to ever conform. Specifically, if over 15% of the homeowners in a condo association are delinquent (failing to pay their dues in a timely manner) or if more than 50% of the units are rented out, FHA buyers will not be able to buy a unit in that complex. That is a huge blow as it means that those units will mostly go to cash buyers, who ironically will probably keep that association in a non-conforming position by renting out the unit. Complexes that already have a majority of renters, or that have been hit by a high number of foreclosures (thus increasing their delinquency rate) end up penalized by the new guidelines which preclude FHA buyers (who are all owner occupants) from buying in their development. And, when the prices in a development sink to the level that only cash buyers want to pay they tend to take a tremendous dip. It is important to note, that you can still obtain financing in these developments. Smaller local banks will often still lend on these units but the terms do not mirror FHA buying terms. Often they require downpayments of at least 25% and the amortization time frame may be shorter than 30 years — thus increasing the monthly payment obligation.
It is not impossible to buy a condo with FHA financing. However, in light of the new guidelines, I believe non-cash condo buyers should focus heavily on the associations which are already FHA approved. And, cash buyers should focus on the associations not in conformance with Fannie guidelines as they offer the best bargains in this market. You can search for FHA-approved condo projects here. In Santa Maria, FHA approved condos currently include Knollwood, River Ranch, Village Greens, and Oak Creek Villas. If you are interested in buying a condo in one of these developments, please send me an email at tni@mintprop.com, or give me a call at (805) 878-9879.
*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market
Located in southeast Santa Maria, Arborwalk is a gated community of townhomes at the intersection of McCoy and Miller; it is near much of the new shopping and commercial development in south Santa Maria. And it is about a 20 minute trip from the main gate of Vandenberg AFB. Imagine walking to everything you need. Imagine living with all the conveniences of modern life easily within reach while living in a protected gated environment. Walking distance to grocery outlets Albertson's and Food Maxx, dining at Yanagi Sushi & Grill and Natural Café, and shopping at Target and Pier One. Arborwalk offers low HOA dues of $88 per month, a fitness trail, a huge greenbelt basin, and inviting rose gardens throughout.
It may seem like small news, but in Santa Maria it is big news that we got a Trader Joe's. For those of us who have been making the treck up to Arroyo Grande for years -- the arrival of Trader Joe's in Santa Maria is a real treat. I can't wait to zip up the street for the fresh organic produce and meats. It is conveniently located in south Santa Maria near Costco, right off the 101 Stowell exit. Since Santa Maria is now the largest city in Santa Barbara county -- it is about time! Welcome Trader Joe's! They are set to open on March 16th.
