Open House by Jim Woodard

Condominium buyers include those who seek a dramatically different lifestyle. They might choose to live in a high-rise development on the edge of a thriving metropolitan area, or in an refurbished townhouse in a downtown setting.

For a really far-out experience, they might select a condo aboard a ocean-going ship. For some, this would be the ultimate dream residence — traveling the world and stopping at exotic ports while living at home. For others who have no taste for extensive traveling, this would be a nightmare residence.

The demand for seaworthy condo developments is big enough to motivate several companies to construct huge condo cruise ships. Some are now under construction, while others are in the design phase.

The first major condo cruise ship was ResidenSea's The World. All the ship's 165 residential units are sold, but resale units are available. The ship provides short-term rentals for prospective resale unit buyers. The 43,524-ton vessel offers a wide variety of floor plans and activity schedules.

The largest condo ship under construction is Residential Cruise Lines' Magellan. This "development on the sea" will be about one-third longer than The World and 76 percent greater tonnage. The increases size allows more amenities for owners.

The Magellan offers 11 different condominium floor plans ranging from 1,000 to 2,256 square feet. Amenities include a pool and fitness center.

Four Seasons is the first condominium ship planned by a major hotel chain. It's a joint venture with builder Ocean Development. Four Seasons Hotels will manage the service on board. Launching is scheduled for 2009.

Other condo ships coming on line are smaller, providing a more intimate atmosphere. One unique offering is River Cities' Marquette. This is more of a river barge than a condo ship. The Marquette will move continually up and down the Mississippi River and its tributaries during summer, and will cruise the Gulf of Mexico's coastal waterways in winter.

The condo units are about the size of a one-bedroom condo on land. Prices are similar to an upscale beachfront condo. Annual homeowner fees range from $8,000 to $22,000, depending on the unit selected.

Prices for condos onboard the large ships, including use of amenities and special services, generally range from $2 million to $18 million.

Most ships sell their condos for full or fractional ownerships, cash or financed. Some fractional units are more like time shares, with time increments of two weeks to a month per year.

Q: Why are Federal Housing Administration mortgages popular these days?

A: The popularity of FHA-insured mortgages is set to grow even more.

A recent announcement from the Department of Housing and Urban Development that FHA will permit lenders to allow consumers to use the $8,000 tax credit for first-time home buyers as a down payment on property.

"We want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment," said Shaun Donovan, HUD secretary while speaking at a Realtor group. The FHA-approved lenders will also be permitted to "monetize" the tax credit through short-term bridge loans, Donovan said. This will allow eligible home buyers to access the funds immediately at the closing table, he said.

"I think we have some early signs that the market overall is stabilizing," he said. "Since January, we've seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate."

Q: What does Federal Reserve Board chairman say about the housing market?

A: Another positive sign in the current real estate market was this recent statement from Reserve Board Chairman Ben Bernanke: "We continue to expect economic activity to bottom out, then turn upward. Improved sales of existing homes are evidence that things are improving. Sales have been fairly stable since late last year, in part because moderating prices has made homes more affordable.

"Also, credit markets have stabilized in recent weeks, allowing more homeowners to refinance their mortgage. That's a good sign for future stabilization."

Q: To what extent are homes becoming more affordable?

A: Today's typical family can buy a median-priced home with $20,000 less in annual household income and save nearly $500 per month on their principal, interest, taxes and insurance compared with similar statistics from 2007, according to the U.S. Census Bureau.

Qualified home buyers can benefit from record low interest rates, declining prices, abundant inventory, including a glut of foreclosed-upon properties, and the $8,000 tax credit for first-time buyers. Consequently, more of consumers are shopping for and buying existing homes, and building permits for new homes are on the rise.

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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