Sarasota Experience . com » Financing

Banks Easing Loan Requirements for Condos

Perry Corneau — Fri, 08 Jan 2010 15:27:38 +0000

Much of the reason for the current over correction in condominium prices has been the lack of available lending due to tightening of lending guidelines for condominiums. I was recently quoted in an article titled Condo groups in financial pain which appeared in the Sarasota Herald. It now looks like Fannie Mae may have figured out that if thier over reaction the the market’s decline is part of the reason for the high rate of foreclosures among condos. The logic is simple; if no mortgages are available to a particular condominium than current owners needing to sell but who cannot afford to sell to cash-only speculators will be forced into foreclosure by the same rigid lending requirements which are intended to stem foreclosures.

Fannie Mae will now allow condominiums which have been denied “approved status” to make application for approval. Fannie Mae will review the condominiums financial stability, occupancy rates, physical condition and association dues to determine if approved status is warranted. If deemed sound, condominiums will be granted approved status for up to 18 months. This is a much needed change which will have a positive effect the values of condominiums previously denied lending and a boon to those savvy cash investors that have purchased into previously denied projects.

Mortage Rates Near Lowest

Perry Corneau — Fri, 09 Oct 2009 15:46:57 +0000

The thirty year fixed-rate mortgages have dipped to nearly the lowest level on record. The fixed-rate is currently at 4.87 percent which is just above the record low of 4.82 percent. Similarly, the 15 year rates is now at 4.33 percent. Rates like these should encourage many to enter the market. International buyers should be intrigued by low prices, low rates and our weak dollar.

First Time Home Buyer Credit

Perry Corneau — Thu, 19 Feb 2009 15:34:13 +0000

Under the recently passed $789 billion economic stimulus package first time home buyers may receive a tax credit equal to 10% of the homes value up to a total of $8,000. Buyers who have not owned a home during the past three years are also eligible for this tax credit. Unlike previous programs, this tax credit is not required to be repaid unless the home is resold in the first three years of ownership. To qualify for this tax credit home buyers must complete their purchase before December first of this year.

Now is a wonderful time to be a first time home buyer. Priced are down and great deals can be made among the many bank owned properties. With a mortgage deduction on mortgage interest paid coupled with this tax credit buying a home at today’s prices may be a great financial decision.

Mortgage Rates

Perry Corneau — Wed, 18 Feb 2009 17:36:53 +0000

This week long-term mortgage interest rates have dropped. The average interest rate for a 30 year fixed rate home loan fell to 5.16 percent. That is down from the average of 5.25 percent last week. Interest rates charged on 15 year loans have also seen declines from 4.92 percent to 4.81 percent. Current rates are down and prices are as well. Now may be the best time to find a great deal on a bank-owned property. Give me a call at 941-650-4626. I can help you find a great deal on on year dream home or condo on the water in Sarasota.

Bank Owned Developments

Perry Corneau — Wed, 04 Feb 2009 03:27:01 +0000

The current economic climate is creating many wonderful opportunities. Currently there are many available bank owned properties suitable for future housing development. These properties consist of multiple housing lots that are available in partially developed neighborhoods. With the credit crunch banks have refused to renew short term loans that had been given to developers. Having now foreclosed on these properties, the banks want them liquidated at prices that are far below original cost. Many such properties are complete with all infrastructure in place and ready for new homes when the market recovers.

Local builders such as Pat Neil are currently selling many new homes in developments where the land cost is low enough to make new construction profitable at today’s market pricing. At the new lots prices that are available from the banks these lands will perform well for savvy investors who take advantage of such opportunities.

Florida Mortgages

Perry Corneau — Tue, 25 Nov 2008 08:19:34 +0000

Contrary to what you may have heard, money is available for Florida mortgages. Current rates are attractive and so are the prices. Thirty year fixed rate mortgages up to $417,000 are available for 5.625%. One hundred percent VA loans are available for 5.75% with no P.M.I.

Foreign National Lending

Perry Corneau — Wed, 19 Nov 2008 19:07:01 +0000

Recent changes in lending practices have added some complexity to the loan process for foreign nationals. It is important for any foreign buyer desiring to purchase Florida Real Estate to work with professional brokers who are familiar with the process. Because banking institutions have been caught with so many bad loans they have raised the minimum down payments requirements to 30 percent in most cases. Additionally, down payments and closing costs are now required to be “seasoned” or deposited in the lenders bank for a 30 days prior to close of the loan. Additionally, escrow accounts for taxes and insurance are now mandated by the Treasury Department under the HOEPA statutes passed this July.

Sarasota Real Estate Deals for Cash

Perry Corneau — Mon, 22 Sep 2008 21:15:43 +0000

The days of easy mortgages are gone for a while and once again cash is king. The banks tightening of lending standards has created some very nice opportunities for cash buyers. The market is showing some sure signs of improvement. As the recent take overs of Fannie Mae and Freddie Mac settle in the credit market will loosen and people will return to the market with easy loans. For now cash offers will be very tempting to motivated sellers.

Financial Markets Woes May Bode Well For Real Estate

Perry Corneau — Mon, 15 Sep 2008 19:57:55 +0000

The financial market uncertainty as typified by recent bank failings, sale of Merrill Lynch and bankruptcy of Lehman Brothers may send some investors back into real estate investments. Great deals can be had in the real estate market right now and the trouble in the financial markets are exerting some downward pressure on mortgage interest rates which are presently at 5.75% for a 30 year fixed conventional loan.

Mortgage Forgiveness Debt Relief Act

Perry Corneau — Mon, 25 Feb 2008 15:07:59 +0000

On December 20th, President Bush signed into law H.R. 3648 otherwise known as the Mortgage Forgiveness Debt Relief Act. Prior to this if a homeowner were to sell their home for less than the amount of the mortgage and the difference were forgiven by the lender, the amount of the forgiven debt would be taxable. This new law will prohibit the Internal Revenue Service from striking with the foot when life has caused one to assume a prone position. Scenarios in which this law would apply would include any foreclosure, short sale or deed in lieu were any portion of debt is forgiven by the lender. Lenders do make a practice of forgiving such debt in cases in which the homeowner has little or no assets other then the mortgaged home. The new law applies only to debt forgiven on a principle residence.