Juicy Estates: Mortgage Blog

Jumbo / Portfolio Lending South

I am sure some clicked the link from one of the social media sites thinking that they would read something salacious or derogatory about my former employer given that I funded $8,700,000 in the month of June and promptly resigned, but nothing could be further from the truth.  The fact is the Bank I worked for up to June 30th of this year is a great organization lead by progressive and forward thinking executive and management teams.  I am proud to have been associated with the organization and to have worked with such a talented group of people.

So the question remains, why did I resign after one of the largest funding months of my career…..the answer is simply that I was presented with an opportunity that I just couldn’t pass up an opportunity to pursue my “Hedgehog Concept” while helping an organization pursue it’s own.

For those of you who have not read Jim Collins’ book Good To Great,  take a moment to click this link for a quick video that outlines the “Hedgehog Concept”.

I was the fortunate recipient of an offer of employment that would enable me to contribute beyond just being a “producer”.  A position that will give me the opportunity to be the part of the growth of the local presence of a great bank with a storied history, a position that will allow me to focus on my core competency, what I am both good at and passionate about,  jumbo / portfolio lending.  In this new position I will continue to produce as well as help focus on organizational goals.

It is with unbridled enthusiasm, passion and energy that I embark on this next phase of my career.  Trepidation has long since faded away and now only the insatiable thirst remains.

Miami Mortgage Market Guide ~ May 3, 2010

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5% Down Conventional Financing Is Back!

This just announced, we are now able to provide conventional financing with just a 5% down payment.  For the past few years the mortgage insurance companies all required at least 10% down but as the South Florida real estate market recovers mortgage insurers are coming back into town.

These conventional financing products should prove to be a more efficient alternative to FHA financing as no upfront mortgage insurance premium is required.  Currently a 30 year fixed rates for this loan program will be about 5.125% with no points or origination fees and the 5/1 ARM is about 4.25%!

To qualify for this financing the buyer and property must meet the following criteria:

• Primary Residences
• Purchase or rate and term refinance only
• 680 minimum credit score
• 1-unit properties only
• Up to $417,000 loan amount
• 41% max debt to income ratio
• 2 months PITI in reserves after closing
• No condos or attached housing in Florida

In additional signs of the recovery down payment and or equity requirements have been lowered for jumbo loans as well providing some much needed relief to the luxury market.

Miami Mortgage Market Guide ~ April 26, 2010

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Miami Mortgage Market Guide ~ April 19, 2010

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Coral Gables Real Estate Leads The Way

As Riley Smith of EWM Realtors wrote in his post on The Coral Gables Real Estate Vault the Coral Gables real estate market is showing all the signs of a solid recovery.  This trend is not uncommon among luxury neighborhoods throughout South Florida.   Even Forbes Magazine’s Luxury Home Index took note of the activity in Coral Gables as I highlighted on March 29th here on Juicy Estates.

We in the finance world have taken note of these positive market trends and have already loosened the purse strings a bit making Jumbo financing in these markets more readily available with easier qualification standards.  A clear example of this is a purchase I am closing at the end of the month on a Coral Gables home with Jumbo financing and only a 15% down payment…..and no mortgage insurance!

Another example of the liquidity returning to the jumbo market is the narrowing of the spread between conforming interest rates and non-conforming interest rates.  As I detailed in my post of April 1st, conforming interest rates (for loans below $417,000) did increase a bit (about .25% as I predicted) as a result of the end of the Fed’s MBS purchase program but interestingly we actually lowered our jumbo rates earlier this week.

If you are buying or selling a luxury home or commercial property in South Florida I would welcome the opportunity to help get you to the closing table.

Special thanks to Lowell Kuvin Esq. of www.CoralGablesZoningLaw.com for the image in this post.

Miami Mortgage Market Guide ~ April 5, 2010

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End of Fed MBS Program Doesn’t Mean Higher Rates

The real estate world is buzzing with talk of higher mortgage interest rates as a result of the end of the Fed’s mortgage backed securities (MBS) purchase program.   The Fed has spent $1.25 trillion dollar in this program to keep rates low and now that the program has come to an end private sector investors are picking up where the Fed left off.

I expect that conforming interest rates will only rise .125 to .375% in the coming weeks which is certainly nothing to panic about.   Does anyone remember where conforming 30 year fixed rates were in 2007….about 6.5% or more than 1.5% over their current levels.

Rates are (and will remain) low through the end of 2010, prices are down and we have an excessive amount of money to lend.  Mortgages, especially jumbo mortgages are easier to get today than at anytime in the past 3 years.

It’s a great time to buy and it’s a great time to be in the real estate business.

Miami Mortgage Market Guide ~ March 29, 2010

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Coral Gables Tops Forbes Luxury Home Index

The Forbes Luxury Housing Index offers a more granular look at high-end markets by tracking the weekly median home sale prices of the 500 most expensive ZIP codes in the country, using real estate statistics provided by Altos Research, a Mountain View, Calif.-based real estate derivatives research group.

With a 158% increase in the median home sales price over February 2009 median prices Coral Gables tops the list of the 500 most expensive neighborhoods from around the country.   While this data may be questionable it’s nice to see a South Florida neighborhood painted in good light.