Archive for January, 2009
Clearwater Condos have new hurdle in getting a Mortgage now – Bargain Hunters Beware
January 26th, 2009 Categories: Clearwater Beach Florida, Clearwater Florida, Community News, Condos for Sale, Tampa Mortgages
Clearwater Florida – It’s the time of year when we get lots of calls from people from NY, PA, OH, MI, Canada and more come down to looking to buy a Clearwater condo and those closer to Clearwater Beach Florida the better. Well now buying one of these condos just got a lot harder and darn near impossible if you’re not paying cash. Fannie Mae has slapped Florida with new tough guidelines – to learn more check out this recap from the The Miami Herald on the the new Florida Fannie Mae Guidelines for Clearwater FL condominiums.
“The standards, which took effect last week and apply only to Florida, include requiring that no more than 15 percent of a building’s unit owners be delinquent on association fees as a condition of funding home loans to new buyers.
Fannie Mae buys the majority of Clearwater Florida home loans from lenders, so it wields significant power in the making of mortgages. Fannie-backed loans generally offer the best rates and lowest down payments for borrowers.”
New Fannie Mae Clearwater FL Condo Mortgage Guidelines
“Fannie Mae has issued new guidelines that Florida condos and condo conversions, and, in some cases, old condos, must meet before it will fund loans:
- At least 70 percent of the units in new condos must be presold.
- No more than 10 percent of units can be owned by a single entity.
- No more than 15 percent of units in all condos can be more than 30 days past due on association fees.
- No more than 20 percent of a condo can be devoted to commercial use.
- All condos, new and old, must have fidelity insurance, which protects association funds from fraud.
- The seller is not allowed to help with down payments or offer other perks, like deductions of association fees, unless they are disclosed.
- Condos must have hazard insurance.
- When investors buy in established projects, at least 51 percent of units must be owner-occupied.”
Source: Miami Herald
The dilemma may not be obvious to you if you’re just starting to “look for Clearwater condos that are bargains” which is what people ask us everyday. Let me give you an example of how these changes may effect you now. There are some Clearwater properties that were built in the height of the real estate boom – it was not uncommon back then for someone to pay homeless people to wait in line so they could get a spot in the new construction because many believed there was no way not to make money and for a long time that seemed to be true.
Now fast forward to 2009 – many of those speculative investors who bought and never intended to hold the condominiums are now ending in short sales and foreclosures others have lost money in the stock market and their situation has changed and their vacation property may no longer be affordable for them. With large monthly condo association fees they quit paying the association which presents additional problems and already burdens to the other condo owners. (This is why as your buyers agent we recommend closely scrutinizing an association’s financials) Well now… if more than 15 percent of units in all condos are more than 30 days past due on association fees…then no buyers can get a Fannie Mae mortgage for those condos – WHOA! That’s HUGE!!!
So the end result is with the most distressed properties and bargains may have become “cash only deals” almost overnight. The communities most in need of buyers may actually be the most hrt by these new rules. If you are planning on buying Clearwater condos you should definitely have real estate agents, like us, to make sure you’re getting the latest information you need to make informed decisions in this dynamic Clearwater real estate market.
If you’re looking to understand all your Florida mortgage options for condominiums, please call Kevin Sandridge at 863-604-3019, or contact him via email at kevin.s@sigfunding.com.
Thinking of Buying or Selling Tampa St Petersburg Clearwater Condos
If you have been thinking about buying or selling a condo in the Clearwater St Petersburg Tampa area…
Contact us for a FREE quote and to find out your Tampa Mortgage options and you can search all Tampa St Petersburg and Clearwater condos for sale right now..
Call Us Today at (727) 710-8036 to hear more about how we can help you!
Copyright © 2007-2009 Jack and Cyndee Haydon, Clearwater REALTORS and your Clearwater Florida Real Estate Consultants specializing in Clearwater St Petersburg Tampa Real Estate and may not be copied, reproduced, distributed, transmitted, displayed or published.
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Clearwater Real Estate Mortgage 101 – Mortgage Rates versus Fees
January 11th, 2009 Categories: Clearwater Florida, Tampa Mortgages
Low Clearwater Mortgage Rates versus Home Loan Fees
Clearwater Florida – 
Kevin Sandridge shares the difference between Tampa Mortgage Rates and Home Mortgage Fees. “If you’re in the market for piece of Clearwater real estate and are becoming more and more enamored with what are now historically low mortgage rates, please take note: You can’t always believe what you read in the papers.
The chart on the right is a terrific example. It’s published by the good folks at Freddie Mac and shows the “going rate” for a 30 year fixed-rate mortgage as reported by U.S. lenders.
- As of the end of December 2008, the chart shows a rate of 5.1%. Yeah!
- What the chart does not show is an accompanying “required fee” for this rate of 0.7%, or $700 per $100,000 borrowed. Boo!
This fee is more commonly known as “points” and versus last year, Freddie Mac’s points nearly doubled from last year’s average of 0.4 points.
So, Why Does Freddie Mac Charge Mandatory Fees when buying a Clearwater home?
The truest answer I can give you is, that Freddie charges mandatory loan fees (read, points) on conforming loans in order to make up for the money they have and continue to lose through foreclosures. These loan-level fees represent mandatory mortgage charges – which act sort of like interest rate adjustments on every mortgage application. They’re not closing cost fees – but rather, a “tax” being levied on today’s well intentioned, well qualified borrowers! Ugh.
In the past, mortgage rates were tied directly to mortgage bonds and reacted accordingly. And while today’s rates are still based on mortgage bonds, they also factor in the fees charged by Freddie Mac (and Fannie Mae, for that matter).
All this said, there is good news. Florida mortgage rates are still low enough that the Clearwater home loan-level fees charged by Freddie and Fannie don’t hurt quite as much as they otherwise might. Just realize that the rates we’re seeing today do have these fees associated with them, and know that you will be paying a little bit more than the posted rates imply.
In many cases, Florida home loan rates and the fees associated with them do tend to move in opposite directions. If you’re focused on the absolute lowest mortgage rate, you might consider paying the additional points. Conversely, if keeping fees to a minimum is important to you, you’ll likely have to accept a little bit higher rate on your home loan. It’s a trade-off, and your Florida mortgage broker can help you best understand the choices. ”
If you’re looking to understand all your Florida mortgage options, please give me a call at 863-604-3019, or contact me via email at kevin.s@sigfunding.com. – Kevin Sandridge”
Thinking of Buying or Selling Tampa Clearwater Real Estate
If you have been thinking about buying or selling a home in the Clearwater St Petersburg Tampa area…
Contact us for a FREE quote and to find out your Tampa Mortgage options and you can search all Tampa St Petersburg and Clearwater homes for sale right now..
Call Us Today at (727) 710-8036 to hear more about how we can help you!
Copyright © 2009 Jack and Cyndee Haydon, Clearwater REALTORS and your Clearwater Real Estate Consultants specializing in Clearwater St Petersburg Tampa Real Estate and may not be copied, reproduced, distributed, transmitted, displayed or published.
(Image courtesy: The Wall Street Journal)
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Clearwater Florida Homeowners will you Skip a week to help?
January 9th, 2009 Categories: Clearwater Florida, Community News, Tampa Bay
Clearwater Florida – Today Swiftmud is asking all of us that own homes in Clearwater to all do our part to help conserve water in the Tampa Bay area. Luckily in Clearwater many of our neighborhoods including Clearwater Beach have reclaimed water however the rest of us need to try our best to do our part….
“In an effort to conserve water during the ongoing drought, the Southwest Florida Water Management District is encouraging residents who irrigate their lawns to “skip a week” during the cooler months of January and February.
According to research by the University of Florida, grass doesn’t need to be watered as often during the cooler months. In fact, three-quarters of an inch of water every 10-14 days is sufficient.
“The cooler months are a good time to train lawns to need less water,” said Sylvia Durell, Florida-friendly landscaping project manager. “Using less water will encourage deeper grass and plant roots, which makes them more drought-tolerant.”
Over-watering can also encourage disease and pests.
Clearwater Homeowners can determine when their grass needs water when:
Grass blades are folded in half on 30 percent of the lawn
Grass blades are blue-gray
A footprint remains on the lawn for several minutes after walking on it
The region is experiencing the effects of a three-year drought and October through May is Florida’s dry season. All 16 counties within the District are under one-day-per-week lawn watering restrictions through Feb. 27, 2009. In addition, tightened restrictions are currently in affect for all of Hillsborough, Pasco and Pinellas counties through June 30, 2009.
Skipping a week of irrigation will help conserve drinking water supplies. Following this skip-a-week plan saves water that the public needs for other critical uses during the dry season.
For more water conservation tips, information about the drought and the current water restrictions, please visit the District’s web site at www.WaterMatters.org/drought.
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