Juicy Estates: Mortgage Blog

Archive for February, 2009

First Time Home Buyer Tax Credit Chart

As most of you know my work is focused almost exclusively on providing financing for luxury homes and therefore first time home buyers are not my area of expertise but I am aware that many will have questions regarding the new Tax Credit that is being signed into effect today by President Obama.  Below is a chart that describes the 2008 Tax Credit as compared to the revised 2009 Tax Credit.

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Update: Asia Condo In Brickell Key

You may be wondering how Asia, the latest development project in Brickell Key, has faired out in the midst of the real estate crisis and economic downturn. Since closings began in April, 2008, 53.66% or 66 of the total 123 units in the luxury tower have closed according to public county records.

In the last few of months tough, only two closings have taken place at Asia. This, coupled with the fact that no project in the area with a post November closing start-date has achieved more than a 4.5% closing rate; is an indication of just how big of an impact the downturn has had on new developments around Downtown Miami.

As a result of tighter lending standards and the new Fannie Mae requirements, Asia will most likely have to primarily rely on cash rich buyers to slowly absorb the inventory or explore the possibility of a bulk sale.

Currently there are 29 units listed for resale at Asia, with asking prices ranging from $1.24 to $9 million. No resales have been recorded so far. There are 16 properties listed for rent between $5,000 and $14,000.

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A Jumbo Rumor That Can Cost You Plenty

If you are a savvy luxury home buyer looking to take advantage of historically low interest rates and the dramatic price reductions in the high end market dont’ be mislead by the rumor on the street that Jumbo financing is not available.  Several time in the past few weeks I have had knowledgeable real estate professionals call me to ask if it was true that Jumbo financing was no longer available…..nothing could be further from the truth.

The fact is that many mortgage brokers and some lenders no longer have the ability to offering Jumbo loans.  However, those lenders that have the financial strength and know how remain committed to the Miami Jumbo mortgage and luxury home markets.

But who can qualify?

This yet another topic that has fallen victim to the Medias’ seeming inability to report facts in favor of reporting misinformation and rumor in an effort to sensationalize all aspects of real estate.

The fact is that underwriting guidelines of today are very similar to those of the late 1990’s and are in no way unreasonable or unmanageable.  Down payment requirements, documentation standards, allowable property types and residency status appear to be those areas which cause many potential luxury home buyers, luxury home owners and Realtors that service this segment of the market the greatest concern.  Knowing the region specific guidelines for the Miami mortgage market is half the battle.

The Facts

If you are buying or refinancing a luxury home and utilizing a Jumbo mortgage which in Miami and most of Florida would be any loan amount above $417,000 then there are just three primary items to keep in mind.

1. You will need to make a minimum of a 30% down payment or have 30% equity in your home in the case of a refinance.
2. You will need to be able to fully document your income and liquid assets to be used for the purchase or refinance.
3. Your median credit score will need to be greater than 700.

The Wells Fargo / HomeServices joint venture provides us with the ability to provide some of the most advantageous Jumbo financing available today.  With interest rates starting in the low 5% range, we offer fixed rate and adjustable rate programs as well as interest only payment features if desired.

As a Private Mortgage Banker my focus is exclusively on the luxury market and providing jumbo financing solutions to luxury home buyers.  If you have questions regarding the jumbo mortgage market please leave a comment or simply give me a call at 305.960.2671.

James R. Venney

Private Mortgage Banker

What Are The Banks Doing With Your Tax Dollars?

Wells Fargo is the first of the major financial institutions to announce that it is paying a quarterly dividend of $371.5 million back to the Federal government on the preferred shares the bank issued when it received TARP funds.   Wells Fargo which reluctantly took $25 billion of TARP money says that has been lending aggressively even as it’s primary competitors are on the brink of being nationalized.

In the fourth quarter of 2008 Wells Fargo made $22 billion in loan commitments and $50 billion in mortgage origination’s which is almost 3 times what the Treasury Department invested in the bank.

 Given Wells Fargo’s reputation as being the most stable and methodical of the major mortgage lenders you may be surprised to know where they stand in the industry…..

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