July 14th, 2009 · View Comments
On Friday, Freddie Mac released a bulletin to its lenders and servicers detailing revised practices for property appraisals. This was in response to new appraisal rules adopted by Fannie Mae and Freddie Mac entitled the Home Valuation Code of Conduct, that went into effect May 1 of this year. As a result of the HVCC, real estate agents started reporting that many property appraisals were coming in below the contract sales price. This was due to lenders relying more on appraisal management firms that employed appraisers with little experience in their local markets. Some appraisers didn't make the proper adjustments when using distressed properties as comparable sales for nondistressed properties.
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Posted in Property Values | View Comments
July 13th, 2009 · View Comments
I happen to live in a nice area of Miami Beach commonly known as "South of Fifth or SoFi". It's full of some of the nicest condo towers you can find anywhere in Miami offering wonderful amenities and offering great views of Biscayne Bay, Government Cut, and the Atlantic Ocean. In SoFi, you'll find a high concentration of luxury condos, and when I say luxury, I mean those priced over 1 million dollars. The following exclusive SoFi properties are available and have been for a while:
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Posted in Financing, Stats and Trends | View Comments
July 11th, 2009 · View Comments
A little known fact in Miami is that it is still possible to buy a condo or home without any money coming out of your pocket. Incredible, considering this is exactly what caused the current credit crisis. So, who do we have to thank for making this possible? Good ol' Uncle Sam.
The Federal Housing Administration (FHA) insures loans made to home buyers with as little as 3.5% down. The program was designed to make home ownership affordable for those who didn't have enough money for a traditional down payment. Through the FHA loan program, a local lender originates the loan, the FHA guarantees the payments, and the lender then sells your loan to an investor. In return for the guarantee and low down payment, FHA-insured loans have a higher interest rate than conventional mortgages. Currently, the rate for a 30yr FHA-insured loan is 1/2 percentage point higher than that for a conventional 30yr mortgage. Current mortgage rates can be found here.
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Posted in Financing | View Comments
July 9th, 2009 · View Comments
With real estate prices in the Miami area retreating to levels last seen at the beginning of this decade, we have seen increased demand from clients interested in purchasing a second home or investment property. There are many great deals to be had, but the potential pool of attractively priced properties is much larger for the all-cash buyer as opposed to someone who wants to finance their purchase.
At the beginning of 2009, Fannie Mae changed its guidelines for mortgages backed by new and established condominium projects. A condo project is “established” if 90% of the units have been sold, is complete and the HOA has been turned over to the owners. A condo project is “new” if less than 90% have been sold, is not completed, is subject to phasing or if the HOA has not been turned over to unit owners.
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Posted in Financing | View Comments
