Condos for Sale
Clearwater Beach Florida Condos | Buyers and Sellers Hurt by Jumbo Loans
April 12th, 2009 Categories: Clearwater Beach Florida, Clearwater Florida, Condos for Sale, Sand Key Florida, Tampa Mortgages
Clearwater Beach Florida - As most of our readers know we work hard to get great deals for our Clearwater Beach condo buyers unfortunately there are some great buys on luxury condos in Clearwater however one of the major roadblocks interested buyers encounter is the fact that in the Clearwater Beach Florida / Sand Key Florida area the allowable Fannie Mae loan limit for conventional loans is only $417,000 with at least 20% down.
Now I would agree that in most areas of Clearwater real estate - this would be plenty, however, when you consider we’re home to some of the best beaches in the United States, it’s not nearly enough if you want to buy a typical beach condo and are looking for a reasonable loan.
Even if you were planning on buying a condo and putting 20% to 25% down it’s a problem because most Clearwater Beach Florida oceanfront 3 bedroom condominiums are still selling from $800,000 to well over $1 million dollars even in today’s real estate market.
Related article:
- Clearwater Beach Real Estate - What do 3 bedroom Beachfront Condos cost?
- Clearwater Beach New Construction - What’s Happening?
- Sandpearl Condos - One of the best places to live in Clearwater Beach Florida
Clearwater Beach FL Jumbo Borrowers Squeezed and so are Sellers
So what does this mean for the Sellers with Clearwater beach condos they are looking to sell?
In my experience…
1) Clearwater Beach low conventional loan limits are causing a lot of mortgage pressure to purchase properties for $520,000 (or less) give or take so a buyer can buy a condo with a loan of less than $417,000.
2) Clearwater Jumbo rates (and terms) further limits the number of ready and willing buyers in this “jumbo” price point - so with less willing and able buyers there is again more pressure on sellers to make a deal with the remaining buyers - and we’re seeing cash is king. Our last two beach condo buyers paid cash for their gulf beachfront condos.
What’s hard to believe is we are currently working with many buyers who are the best clients a mortgage lender could want (excellent credit, no debt, no issue with income qualifications) and yet they are not willing to buy a second home / vacation home under the recent terms one National bank / lender gave … For Jumbo loans on beach condo purchases needing a loan over $417K but under 1 million they didn’t even offer a fixed rate loan only a 5/1 ARM at 5.75% with a 1% point so basically when conventional home buyers are getting mortgage rates under 5% - some of the best possible borrowers are being asked to pay a premium of almost 7% and up.
When I asked “why?”, the banks told me that it’s because “Jumbo Loans” are currently the highest loans in default. Unfortunately, those I see in preforeclosure and foreclosure on the beaches now are very different than the potential buyers we are seeing. We all know lending had loose guidelines back a few years and many real estate buyers got in way over their heads - these are not the buyers we are working with today.
77% Pending Sales of Clearwater Beach Condos and Sand Key Condos are NOT Jumbos
There are currently 22 Clearwater condos under contract and pending sale in the Tampa Bay MLS - of that 17 of them has a listed purchase price of under $420,000, 4 are in the $600K’s and one is pending at $849,000 (all of which could be lower on closing - we don’t know the negotiated purchase price at this point). It’s not surprising that it was recently reported that 50% of all real estate sales in Florida this year have been cash transactions.
In our experience, today’s Tampa mortgage rates for Jumbo Loans have caused several of our clients to scale back their Clearwater beach condo purchases and others have postponed them while they free up additional funds to make up the difference in purchase price and “conforming loans”. We’ve seen several people who planned on buying beachfront condos for @$800,000 and now have scaled back $200-300K to qualify for the conforming loan rates and terms.
So if you are a seller on Clearwater Beach Florida today (or Sand Key, Island Estates and our Gulf beaches) the best thing that can happen for you right now is that Banks get bank into the Jumbo loan market and begin to offer more attractive Jumbo Loan rates and terms for these willing Clearwater Beach buyers. With rates where they are - if Jumbo’s loosen up many of our buyers tell us they would prefer a larger more expensive condo if there aren’t punitive lending terms for them.
Well there was some good news this week….
Clearwater Beach Real Estate gets some good Jumbo Loan news
Today I read an article that stated “that the hard-to-find jumbo loan may be making a comeback. Bank of America is among the major banks rolling out jumbo mortgage programs and holding the loans in their own portfolios.
It will offer loans from $730,000 to $1.5 million with 30-year fixed rates under 6 percent; but borrowers must make a 20-percent downpayment, have good credit, provide proof of income, and hold six months’ of principal, interest, property tax and insurance payments in reserve.”
I know we are constantly working with local bankers who offer in-house “portfolio loans” - we can only hope that other banks, both local and national, will follow Bank of America lead in the Jumbo loan market. If you have questions and need a good local banker, give us a call and we can introduce you to several good lenders and we will continue to keep you posted on what’s happening on our beaches.
Clearwater Beach Real Estate - Selling or Buying - Waterfront Condos or Homes - We Can Help!
If you’ve been thinking about buying or selling a waterfront or oceanfront beach condo or house in the Clearwater St Peterburg Tampa Bay area…
Call Us Today at (727) 710-8036 to hear more about how we can help you!
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..
Copyright © 2007-2009 Jack and Cyndee Haydon, Clearwater REALTORS and specializing in Clearwater Florida, Clearwater Beach Florida, and Pinellas County Waterfront homes and condos. Information is deemed reliable however it is not guaranteed and subject to change at any time.
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Clearwater Beach Florida Condos - What’s Happening with New Construction?
March 4th, 2009 Categories: Clearwater Beach Florida, Condos for Sale, Luxury Real Estate
Clearwater Beach Florida Waterfront Wednesday Report
Clearwater Beach Florida - This week I was asked what’s up with the new Clearwater beach condos that were to be built? Where do they stand now? So I thought I’d give a detailed update for many of our readers who may be wondering the same thing…
There were 4 main luxury condo projects on Clearwater Beach that come to mind and since it’s Waterfront Wednesday I thought it would be the perfect topic to update you on today.
- Sandpearl Residences ( a JMC luxury condominium development)
- Aqualea (a Hyatt condo-hotel development)
- Marquesas (a JMC luxury condominium development)
- Enchantment
Let’s start with the Sandpearl Residences - while you might be thinking wait a minute, the Sandpearl condos are completed. Yes they are but they are not sold out. The developer, JMC, still has some original inventory and recently dropped their prices to hopefully get these babies sold.
Clearwater Beach Florida New Construction - Sandpearl Condos for sale
In the Sandpearl Residence Tower, as of March 1st there were technically 11 “new” Sandpearl Residences for sale since these are not “resales”. The prices range from under $750,000 to $1,148,000 with only one 3 bedroom condo still available.
- (3) Sandpearl Condos “C Units” from Phase I which are 2 bedroom 2 1/2 baths with a tech center for sale ranging in price from $834,000 to $1,065,000 depending on their view and whether it’s furnished or not.
- (4) Sandpearl Condos “D” Units from Phase I still available which are 2 bedroom 2 1/2 baths with a den for sale with prices ranging from $986,000 to $1,148,000 - again depending on if it’s furnished and which waterfront views you are getting. Some of these condominiums will be having a price increase shortly based on some upgrades that are to be done.
- (1) Sandpearl Condos “G” Unit from Phase II is still for sale - it is a 3 bedroom 3 bath Sandpearl Condo for $985,000 (unfurnished) Sandpearl Condos
- (2) Sandpearl Condos “F” Units from Phase II are still available which 2 bedroom 2 and 1/2 baths both in the $900,000s
- (1) Sandpearl Condos “H” Unit from Phase II is still available - this is the 2 bedroom 2 bath townhome that faces east so there are no waterviews with this unit and it is available for under $750,000 at this time.
Related Articles:
- Sandpearl Condos - Insiders Guide to Sandpearl Residence Condominium Views
- Sandpearl Residences - One of the best places to live in Clearwater Beach Florida
Clearwater Beach FL New Construction - Aqualea Condos for Sale
Aqualea Resort Condominium Hotel on Clearwater Beach is mostly what we call a “condotel” because it combines the benefits of a condo with that of a hotel. It also means that the condotel suites you buy you are only able to use for a maximum of 60 days a year and the rest of the time it must be available for rent (with the Hyatt or your own property management company).
While the building is still under construction they are planning to have their “soft opening” in December 0f this year. Aqualea currently has condo-hotel units available from 522 sq ft studio units starting at $460,000 to two bedroom suites that are 1828 sq ft currently selling for $980,000. If you would like more info on these don’t hesitate to ask us - I will also be doing an in-depth article about this latest property on Clearwater Beach.
The will only be 18 “true” Aqualea condos for sale are actually called “The Residences of Aqualea” and will be directly facing the Gulf of Mexico, overlooking the newly completed Clearwater Beach BeachWalk. 1 unit has been sold however currently they are not being offered for sale - the beginning price will be $2 million and up I am told. One was rumored to have been sold for $3 million however with the changing market it seems they are holding on to their inventory at least for now.
The 18 condominiums will be made up of:
- Two 6 bedroom / 6 1/2 Bath Penthouse units,
- Eight 4 bedroom 3 1/2 bathroom Aqualea condos and
- Eight 3 bedroom and 2 1/2 bathroom condos in the Residences of Aqualea
Related Articles:
- Aqualea Condos -Insiders Guide to New Aqualea Condo and Hotel
This promises to be a magnificent addition to south Clearwater Beach (located just south of Pier 60) - If you want exact pricing and availability give us a call at (727) 710-8036
Clearwater Beach Florida New Construction - Marquesas Condos for sale
Marquesas Condos - So here are pictures I took this week of the “future site of the Marquesas condos” on south Clearwater Beach just before you go over the bridge to Sand Key. What a difference a year makes - see the “for rent” sign in their old “sales center”. The latest word I got from the developer’s sales staff is that they are not selling or discussing Marquesas condominiums until the developer sells out of their existing Sandpearl condos (see above).
We’ve also heard that they are conducting focus groups and re-evaluating the existing plan in light of the current economy and existing inventory of luxury condos on Clearwater Beach.
I heard they may be scaling back which I think would be a great idea since we have people everyday asking us for “new Clearwater beach condos” under $500,000 - which in light of the current FHA guidelines that makes $417,000 the loan limit before you get into Jumbo mortgages one’s gotta believe there’s a sweet spot in there - just look at what’s selling right now.
There’s no arguing that if anyone can make it work it will be JMC Developers - their team has brought 3 fabulous properties to North Clearwater Beach - Sandpearl, Mandalay Beach Club and Belle Harbor.
So as far as Clearwater Beach new construction goes - Marquesas condos are on hold.
Clearwater Beach Florida New Construction - Enchantment Condos for sale
Enchantment luxury condos promised to be an amazing waterfront property - I still have videos and pictures from the Best Western that showed the actual views.
Unfortunately like many Clearwater construction projects when the economy turned so did the quantity of luxury condo buyers - especially in light of all the “new construction” we saw on Clearwater Beach 2004-2008. We need time to absorb all this new inventory before I believe we’ll see any real “demand” or viability for more.
I’m sorry to see this project gone and the last reminder of the project are the signs in the parking lot that reserve spots for the “Future Enchantment Owners” which were still there as I drove by yesterday.
Clearwater Beach Real Estate - Buying or Selling - We Can Help!
We also have lots of great Tampa beach bargains on bank-owned foreclosures, short sales and just down right motivated sellers from Clearwater Beach Florida to Tierra Verde so if you’ve been thinking about buying or selling a waterfront or oceanfront beach condo in the Clearwater St Pete Tampa Bay area…
Call Us Today at (727) 710-8036 to hear more about how we can help you!
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..
Copyright © 2009 Jack and Cyndee Haydon, Clearwater REALTORS and your Clearwater Beach Real Estate Consultants specializing in Clearwater Beach Florida and Sand Key Florida. Info may not be copied, reproduced, distributed, transmitted, displayed or published.
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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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