Tampa Mortgages
Clearwater Florida Home Buyers and Sellers should feel Feds Impact
September 21st, 2010 Categories: Tampa Mortgages
Clearwater Florida home buyers and sellers enjoying a beautiful sunny September day today may not even realize that the Federal Open Market Committee adjourns from its 6th scheduled meeting of the year, and 7th overall.
So even though you may not realize it, when they adjourn, Federal Reserve Chairman Ben Bernanke will release a formal statement to the market that will impact us here in Clearwater real estate market. In it, the Fed is expected to announce “no change” to the Fed Funds Rate – so what does that really mean for Clearwater Florida home buyers and sellers?
Currently, the Fed Funds Rate is within a target range of 0.000-0.250 percent. It’s been at this same level since December 2008. Note that the Feds Funds Rate is not “a mortgage rate” — nor is it a a consumer rate of any kind. The Fed Funds Rate is a rate that defines the cost of an overnight loan between banks. And, although the Fed Funds Rate has little direct consequence to everyday Clearwater Florida home owners, it is the basis for Prime Rate, the interest rate on which most consumer cards are based, plus many business loans, too.
Therefore, because the Fed Funds Rate won’t change today, neither will credit card rates. (I know many of us breath a sigh of relief when we hear that)
Tampa Mortgage rates, however, are a different story. Tampa Mortgage rates should change today — regardless of what the Fed does. It’s more about what the Fed says. In its statement, the Federal Reserve will highlight strengths and weaknesses in the economy, and threats to growth over the next few quarters.
Depending on how Wall Street interprets these remarks, mortgage rates may rise or fall. If the Fed’s comments signal better-than-expected growth, bond markets should lose and mortgage rates should rise. Conversely, if the Fed’s comments signal worse-than-expected growth, mortgage rates should fall. If you’re actively shopping for a mortgage, it may be prudent to lock your rate ahead of the Fed’s announcement today. The Fed adjourns at 2:15 PM ET. Call your loan officer to lock your rate. The Fed meets 8 times annually.
Call or email us today if you are thinking of selling your home or condo in Clearwater FL, Dunedin FL, Safety Harbor, Palm Harbor, Largo, Seminole, Tarpon Springs, Clearwater Beach FL, Belleair Beach, Indian Rocks Beach FL, Indian Shores, Redington Shores, North Redington Beach FL, Redington Beach, Madeira Beach, or Treasure Island FL.
Wondering what your Clearwater Home is actually worth today? Just call and ask us for a Market analysis for your house – in this dynamic market home values change day to day.
Thinking of buying while Tampa Mortgage rates are still low and home values are down?
- Search for waterfront homes and condos – click here >> Clearwater FL Homes For Sale
Got any questions, just give us, your local Clearwater Real Estate Agents, a call or talk to your loan officer about locking your rate on the home or beach condo you want to buy.
We’re passionate about being your Clearwater real estate advocate. We’re committed to delivering Results daily based on Integrity, Knowledge & Experience – helping you find the perfect Clearwater FL homes for sale – just call and ask.
We’d like to be YOUR Clearwater Real Estate agents – specializing in luxury waterfront homes and condos! Call Cyndee -727.710.8035 or Jack – 727.710.8036
Warmly,
Cyndee and Jack Haydon
Charles Rutenberg Realty
Clearwater Real Estate Office
1545 S. Belcher Rd
Clearwater Florida 33764
727-710-8035 (Cyndee’s cell)
727-710-8036 (Jack’s cell)
We’d like to be YOUR Clearwater Real Estate agents – specializing in luxury waterfront homes and condos!
See What 20+ Clearwater Home buyers and sellers are saying in Clearwater Neighborhood videos
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Clearwater FL Homes for Sale benefit -Tampa Mortgage Rates fall due to Icelands Volcano
April 22nd, 2010 Categories: Real Estate News, Tampa Mortgages
Tampa Mortgages – Clearwater – St Pete – Tampa Bay area
Tampa 
Mortgage rates and Clearwater home affordability have improved lately, thanks to an unlikely ally — Mother Nature.
In the 7 days since Iceland’s Eyjafjallajökull erupted, ash clouds have grounded planes, disrupted businesses, and stranded exports in warehouses worldwide.
It’s a drag on commerce that’s spilled over onto Wall Street. As experts debate the potential for future seismic activity, traders are taking some of their investment risk off the table.
In trading circles, it’s called “safe haven buying”. When the market gets cloudy, investors often move their cash into relatively safe assets. This includes government-backed securities — mortgage-bonds among them.
Demand for bonds rise, pushing up prices and driving down rates.
Conforming and FHA mortgage rates in Florida touched a 3-week low earlier this week.
Volcanic eruptions and like natural disasters remind us: Tampa mortgage rates change for all sorts of reasons. Some we can predict, most we cannot. There’s literally thousands of influences on the U.S. mortgage market.
If you’ve been shopping for Clearwater FL homes for sale or Clearwater beach condos or floating a mortgage rate, luck’s been on your side. Mortgage rates have fallen post-Eyjafjallajökull. However, as ash clouds dissipate and business resumes worldwide, investors will regain their collective appetite for risk and safe haven buying will reach its natural end.
When that happens, Tampa mortgage rates will rise.
Therefore, if you are in the process of buying a Clearwater home or beach condo use the seismic uncertainty to your advantage. Consider locking your Tampa mortgage rate sooner rather than later — while rates are still low.
Got any questions, just give us, your local Clearwater FL Realtors a call or talk to your loan officer about locking your rate on the Clearwater FL homes you want to buy.
We’re passionate about being your Clearwater Fl real estate advocate. We’re committed to delivering Results daily based on Integrity, Knowledge & Experience - helping you find the perfect Clearwater FL homes for sale.
We’d like to be YOUR Clearwater FL Real Estate Team!
Call Cyndee @ 727.710.8035 or Jack @ 727710.8036
Warmly,
Cyndee and Jack Haydon
Charles Rutenberg Realty
Clearwater FL Real Estate Office
1545 S. Belcher Rd
Clearwater Florida 33764
727-710-8035 (Cyndee’s cell)
727-710-8036 (Jack’s cell)
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Clearwater FL Homes for Sale | Is Your Tampa Mortgage Preapproval Stale?
April 11th, 2010 Categories: Clearwater Florida, Tampa Mortgages
Clearwater FL Homes | Buyers need to Update Tampa Mortgages & Preapprovals
Clearwater FL - It’s a busy weekend with the National Open House event. Lots of people checking out Clearwater FL Real Estate. Before you get too excited…have you checked if your Tampa Mortgage preapproval is still valid or is it stale? As the federal home buyer tax credit nears its April 30 end-date (19 days and counting down), there’s a lot of would-be home buyers in Clearwater FL still working to get a home under contract – both first time home buyers and those taking advantage of the move up tax credit.
A piece of advice for all of you looking to buy a home right now: If your Tampa Mortgage pre-qualification and/or pre-approval letter is more than 8 weeks old, it would be smart to have your mortgage lender “re-pre-approve” you. Here’s a short video I found on Youtube that explains the basic pre-approval process you may find helpful (of course you’ll want to talk to a local lender about your specific situation): 
Why? Because we live in a dynamic lending market and the mortgage guidelines have been in flux and your original lender letter may now be invalid.
For example, over the past half-dozen months, the majority of Tampa mortgage lenders have reduced their risk tolerance can many of these items have tightened up with respect to:
- For Clearwater Homes for sale, buyers Maximum debt-to-income ratios have changed
- Minimum allowable credit scores for Clearwater Home buyers
- Calculation of “assets in reserve” when buying Fl homes for sale
For Clearwater Beach buyers of Clearwater FL condos for sale and co-ops, even the subject property itself is coming under tighter guidelines and tougher scrutiny. We’ve written about some of these changes before:
Clearwater FL Homes for Sale – Related Articles:
- Clearwater FL Homes for Sale Haunted by FHA Appraisals
- Clearwater Beach Florida Buyers Must Know 6 Reasons Cash May be the ONLY Purchase Option
- Clearwater Fl Homes for Sale - 5 Home Seller Myths Expose The Emperors New Clothes
Today’s Tampa mortgages require applicants need to be strong on all fronts to make lenders comfortable based on the current risk and problems they’ve experienced. Did you know that it takes more than just good income and credit to get approved anymore and today’s home buyers should revisit their qualifications.
What passed underwriting to get a loan approved in January may not still pass in May. We recently had a client surprised by the fact that even though they had lots of income and verifiable assets their low credit score kept any lender from being willing to finance their mortgage even when planning to put 50% down. Luckily for them, in 3 months they were able to clean some things up and raise their score so we’re set to close next month.
Being pro-active brings other advantages, too. If a mortgage re-pre-approval does unearth an issue, it’ll be easier for every party to the transaction to address and correct it up-front versus trying to clean up a mess once a home’s already under contract and racing the deadlines.
Got questions, just give us, your local Clearwater FL Realtors a call or talk to your loan officer about your pre-qualification/pre-approval letter before you bid on a Clearwater FL home.
So if you’re looking for Clearwater FL Realtors we’d like you to know that we are passionate about being your Clearwater real estate advocate. We’re committed to delivering Results daily based on Integrity, Knowledge & Experience - helping you find the perfect Clearwater FL homes for sale.
We’d like to be YOUR Clearwater FL Real Estate Team!
Call Cyndee @ 727.710.8035 or Jack @ 727710.8036
Warmly,
Cyndee and Jack Haydon
Charles Rutenberg Realty
Clearwater Real Estate Office
1545 S. Belcher Rd
Clearwater Florida 33764
727-710-8035 (Cyndee’s cell)
727-710-8036 (Jack’s cell)
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Clearwater FL Homes for Sale Haunted for Months by FHA Appraisals
March 11th, 2010 Categories: Real Estate News, Tampa Mortgages
Selling your Clearwater FL Home Beware FHA Appraisals Carry 4 Month Penalty
Clearwater Florida - Dear Mr./Mrs. Home seller today there almost 3000 Clearwater Fl Homes for sale. I would guess that most sellers don’t realize that after January 2010 FHA appraisals now have a 4 month shelf life. So while it’s not officially a penalty, you tell me, because now when you get what you think is a “low appraisal” on your home using the new HVCC appraisal process you may be tempted to not sell to the current buyer because the appraisal says it’s currently worth less than you believe. You may be tempted to say find I’ll let this buyer out of the purchase contract and just put your house back on the market for sale hoping to get another buyer and a better appraisal.
Well…Did you realize that the lending rules have changed and now any other potential buyers for your home for sale in Clearwater that are going to get an FHA or VA loan (which is the majority of home loans done under $300,000 in the Tampa Bay today HAVE to use that same appraisal – remember…the one you hated and just wanted to forget about?
Why? Because when a buyer is getting an FHA loan and an Appraisal / Case# is assigned – that Case# stays with that house. If a valid appraisal exists – that’s what’s going to be used so now that appraisal will actually now stay with your home for 4 months. (If you have more questions contact our local FHA expert, Brian P Forrester at 727-216-8138.
So now you can see that regardless of what future buyers WANT to offer you for your home for sale in Clearwater they can’t and still get an FHA loan for anything more than the value given in the original appraisal.
- Related Article: Clearwater Beach Florida Buyers Must Know 6 Reasons Cash May be the ONLY Purchase Option
So the bottom line Mr./Mrs. Home Seller is that no matter how much buyers really do love your house or condo - our buyer’s can’t and won’t purchase overpriced Clearwater Fl homes – and your fantasy price won’t make it through the appraisal process (with ANY buyer) so if you really want to sell, please listen to what the real estate market sold homes in Clearwater (in the last 90 days) are telling us…and price your home realistically.
If you are considering buying a home in Clearwater, this is just one of the many areas we help with and why we believe you benefit from having your own representation in this process. We believe you deserve an advocate as well as all the current information available to determine a home’s value right now. We provide extensive analysis and advice to the buyers we work with based on our knowledge and experience so you can make strong offers. This can prevent you from overpaying as well as enabling you to get the home of your dreams that’s priced right as well as not risking losing $1000+ educating the home seller about his home’s value by doing home inspections, appraisals and more only to find out you can’t buy the home cause the bank won’t finance the home and the seller won’t seller for less and is actually stuck in denial.
I could go on forever with more real life real estate stories and will share more in the coming weeks – knowing that home sellers have an agent representing them – don’t you deserve the same when you plan to buy your home or beach condo?
So if you’re looking for Clearwater FL Realtors we’d like you to know that we are passionate about being your real estate advocate. We’re committed to delivering Results daily based on Integrity, Knowledge & Experience - helping you find the perfect Clearwater FL homes for sale.
We’d like to be YOUR Clearwater FL Real Estate Team!
Call Cyndee @ 727.710.8035 or Jack @ 727710.8036
Warmly,
Cyndee and Jack Haydon
Charles Rutenberg Realty
Clearwater Real Estate Office
1545 S. Belcher Rd
Clearwater Florida 33764
727-710-8035 (Cyndee’s cell)
727-710-8036 (Jack’s cell)
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Buying Clearwater Beach Houses and Condos – More Jumbo Loans Will Help
March 3rd, 2010 Categories: Clearwater Beach Florida, Tampa Mortgages
Clearwater Beach Florida – Well we got some good news today for people in the market to buy or sell Clearwater Beach houses and condos. There may be a light at the end of the tunnel that should help because the limits on conforming loans and the availability of Jumbo loans is improving. I actually wrote a detailed article almost one year ago explaining why the lack of Jumbo loans would hurt both buyers and sellers as well as the overall Clearwater real estate market. It’s taken us a long time to see this situation improve any.
You can see the complete article here => Update on Clearwater Beach Jumbo Loans
Banks are finally starting to loosen up (translation: feeling more secure about our real estate market which is good for all of us) and it should make it easier for people to buy second homes or move up to homes over the $417,000 conventional loan limit. The Los Angeles times recently reported that the average interest rates on a 30 year fixed rate jumbo fell to 5.79% which is a five year low. You may remember that we were seeing painful rates of 7.5% last summer for our most qualified best buyers which was extremely frustrating and actually caused several of our clients to put their plans to purchase on hold.
Luckily, we work with some of the best local lenders so we have been able to successfully help our clients purchase the homes and condos they wanted. Lenders who really ”know” the Clearwater real estate market along with waterfront homes in neighborhoods like Island Estates or Belle Isle is essential – regardless of who you’re working with – make sure your lender understands and is comfortable in our market. If you are planning to buy a condo today I highly recommend working with local lenders especially those that can do portfolio loans in-house and specialize in financing beachfront and waterfront properties. There’s nothing worse than finding the home of your dreams and having a lender that can’t perform cause you probably won’t know that until you’d spent almost $2,000 of your money.
Related Article => Clearwater | Tampa Mortgages – Buyer Beware of FHA loans and Seller Concessions
The second bit of good news we got today was that the conforming loan limits for 2010 will remain at $417,000 like it has been for the past 5 years. This is actually great news in my opinion because that means you can purchase a property for up to $520,000 and still be a standard conforming loan which may enable you to get even more attractive rates. $520,000 buys a lot more beachfront and waterfront than it did 5 years ago.
We are also getting signs that lenders are loosening up about lending on beachfront condos (luckily we’re not Miami) - we are also seeing most condos are being listed for prices within @92% of what they’ll end up selling for and I was encouraged to see an appraisal come back for one of our buyers where it stated the market was “stable” not “declining” – when I ran the 6 month comparable sales against the 3 month sales I found it had actually increased slightly – we’ll keep monitoring this for you condominium building by building and neighborhood by neighborhood to give you the best insider information to make good decisions – whether you’re considering buying or selling in the next few months.
Related Article: => Clearwater Fl Realtors Get Results For Home Buyers
My intent was not to make this a Tampa Mortgage themed week however it’s never been more important to be informed on what’s happending in this very dynamic market and I’ve got another article in my head about the impact of FHA appraisals on sellers right now. 
If you’re looking for a Clearwater FL Realtor we’d like you to know that we are passionate about being your real estate advocate. We’re committed to delivering Results daily based on Integrity, Knowledge & Experience - helping you find the perfect Clearwater FL homes.
We’d like to be YOUR Clearwater Real Estate Team!
Call Cyndee @ 727.710.8035 or Jack @ 727710.8036
Warmly,
Cyndee and Jack Haydon
Charles Rutenberg Realty
Clearwater Real Estate Office
1545 S. Belcher Rd
Clearwater FL 33764
727-710-8035 (Cyndee’s cell)
727-710-8036 (Jack’s cell)
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Clearwater | Tampa Mortgages – Buyer Beware of FHA loans and Seller Concessions
March 2nd, 2010 Categories: Tampa Mortgages
Clearwater FL | Tampa Mortgage Update for FHA Home Loans
Clearwater Florida – While we are rarely working with FHA loans these days on the waterfront and beaches – we are seeing some deals where people are buying homes that do fall under the current Tampa cap of $300,000 and it’s their primary residence so they can take advantage of a FHA Tampa Mortgage. The other reason I wanted to share this information is because whatever Fannie and Freddie do…it seems before too long we see similar things being applied to conventional loans too. So here’s an update on some new issues home buyers need to be aware of when buying homes or condos in Clearwater and the Tampa Bay area if you’re getting an FHA mortgage and the home seller consessions has agreed to pay up to 6 % of your closing costs and possibly prepaids:
Not All FHA Lenders are Counting 6% Seller Paid Closing Costs the Same
There has been a lot of talk about recently whether the FHA would coninute to allow the maximum amount a seller could contribute to a home buyer’s closing to be 6% or if they would drop it to a maximum of 3%. I got this great video today from Brian P. Forrester of TriCounty Mortgage (see below). Brian explains that this change hasn’t happened yet, however, buyers are getting “surprised” by some others depending on your lender and you do need to realize that before (worst case) you didn’t budget enough money to close=>
Now… if the seller IS paying up to 6% some lenders are counting the cost of the “owners title policy” in that 6% so this could mean $800, $1000, $1200 more you may have to be prepared to bring to closing.
This video is short and Brian knows his stuff so I’d encourage you to check it out to hear him explain it.
Call Brian at 727-216-8138 if you have more questions – he’s an expert at helping buyers with FHA, VA and home mortgages in Tampa Bay.
And if you’re looking for a Clearwater Realtor we’d like you to know that we are passionate about being your real estate advocate. We’re committed to delivering Results daily based on Integrity, Knowledge & Experience - helping you find the perfect Clearwater FL homes for sale.
We’d like to be YOUR Clearwater Real Estate Team!
Call Cyndee @ 727.710.8035 or Jack @ 727710.8036
Warmly,
Cyndee and Jack Haydon
Charles Rutenberg Realty
Clearwater Real Estate Office
1545 S. Belcher Rd
Clearwater Florida 33764
727-710-8035 (Cyndee’s cell)
727-710-8036 (Jack’s cell)
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Clearwater Beach Condos – Buyers Must Know 6 Reasons Cash May be the ONLY Purchase Option
January 4th, 2010 Categories: Clearwater Beach Florida, Condominiums, Tampa Mortgages
Clearwater Condos for Buyers - Cash is King and sometimes your ONLY Financing option when Buying Florida Beach Condos
Clearwater Beach Florida – I had a buyer from Brazil contact me yesterday excited about coming to Clearwater Beach Florida to buy a condo in February. She shared beach condominium communities that interested her and I asked her the most tactical planning question I’ve found for buyers planning purchase of a Clearwater beach condo (especially a second home / vacation home) in today’s Florida real estate market…Will you be paying cash or financing?
Are you paying cash or will you need a mortgage…because it will affect your Beach Condo choices..
Me: I told her that “I’d set up a search for her once I knew her plans since many condos are not eligible for financing”
Her: “Hi Cyndee, thanks for the quick response. Not eligible for financing? Why would this be? Thanks”
I realized when she asked that question that many of our readers and buyers planning to buy a beach condo this winter may have the same questions and not be aware of what’s been happening with Fannie Mae and that there are new hurdles in getting a Tampa mortgage and even when you do qualify you need to plan to have 30% or more for a downpayment (up from 20% this summer)
6 Reasons you may not be able to get a Tampa Mortgage foater Beach Condo today
Unfortunately, Florida still has the “honor” of having the second highest foreclosure rate in the nation and at the top of the list, are condos, especially those that are not primary residences. Additionally, mortgage investors in general, consider Florida to be a declining market (whether still true or not) and as such are very conservative about 2nd home condo purchases in Florida particular.
This past year Fannie Mae added several restrictions making it more difficult for developers and current owners to sell their units. The government-backed mortgage-finance company stopped guaranteeing mortgages in condo buildings where fewer than 70% of the units have been sold, up from 51%.
See article detailing: Fannie Mae Mortgages tighten for condos
addition, if a condominium finds itself in one of the following situations then lenders aren’t approving loans for any condos in buildings. This is true for condos where:
- 15% of current condominium owners are delinquent on association fees; The calculation was also changed this past year from being 15% of the total fee payments to 15% of total units.
- More than 10% of units are owned by a single-entity. Apparently, this was to keep the so-called “vulture buyers” from taking over project; In addition, they also want to see only a limited number of non-owner occupied units as well.
- The condos must be “warrantable” – each approved individually and this can change month to month
- The homeowners association must have at least 10% of its budgeted income designated for replacement reserves and adequate funds budgeted for the insurance deductible; Many older condo associations keep woefully inadequate reserves and operating budgets, so they are non-compliant
- No more than 20% of a condo project can consist of non-residential space. There goes most mixed commercial-residential use projects
Buyers face more hurdles in financing Clearwater Beach Condos
and #6) This one is specific to foreign nationals. There is currently no one we’ve been able to find lending to foreign nationals due to the issues that revolve around lenders options when a borrower defaults and is not a US citizen. (If you know of anyone please let us know The one exception is we still have one lending source for Canadians (a bank that is located in both countries even though it is HQ in Canada)- Our experience has been that all other foreign nationals are finding they have to purchase with cash regardless of the condo situation.
If a Clearwater beach condo and the borrower both do qualify under current lending guidelines then there is an additional amount to budget for it’s HO6 which is now required. Borrowers must now obtain a condo unit owners insurance policy unless the master policy provides interior unit coverage; coverage may not be less than 20% of the assessed value.
A condo-owners policy, known as an HO-6 policy, covers personal property, personal liability, and the physical unit from the studs and in. Many policies also include special assessment coverage or the option to include a special assessment coverage rider since these assessments have caused several borrowers to be foreclosed on since they couldn’t pay them and the HOA can then foreclose on the owner – which is definitely not good news for the lenders or the owner. This came about because when we experienced hurricanes in 2004 many people didn’t have enough insurance for the “inside of their condo” and many communities had issues with condos not repaired, mold, etc. so in an effort to protect all owner’s in the communities investment it is now regulated that every borrower must carry this coverage. (This just went into effect this past month)
I hope information was helpful to you as well…
Do you have a question you’d like me to answer about what’s happening today in Clearwater real estate?
Just email, call or leave a comment and I be separate myths from our current realities…
Buyers continue to tell us that selecting the best Clearwater Realtors, online or from a distance, can be a challenge. So some of our past clients agreed to share their experiences and tell you why they think you should work with us. Meet some of our clients and now friends…we’d love to be YOUR choice too!
Give us a call so we can to discuss your needs! (727)710-8035 or (727) 710-8036
Clearwater Beach Condos: If you want to Buy Waterfront Condos or Homes – We Can Help!
If you’ve been thinking about buying 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 on Tampa Mortgages 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 – History shows When Tampa Mortgage Rates Drop..Lock Don’t Loaf
April 14th, 2009 Categories: Clearwater Beach Florida, Clearwater Florida, Tampa Mortgages
Clearwater Beach Buyers Don’t Blink or Record Low Mortgage Rates Could Be Gone
Clearwater Beach Florida – For the fifth time in just 7 months, those shopping Tampa mortgage rates learned an important lesson this week: When mortgage rates plummet unexpectedly, they often recover just as fast. Don’t blink or those rates could be gone!
Recently the Federal Reserve’s newest $750 billion mortgage market pledge helped to push conventional Clearwater home loans and conforming mortgage rates near their lowest levels since WWII. Then we saw how 24 hours later, however, those rates were expired.
After considering the long-term implications of the Federal Reserve — literally — printing new money to service the recession, markets grew fearful that the Fed’s interventions will eventually lead to inflation. Inflation, of course, is the enemy of all mortgage rates.
Related Tampa Mortgage News:
- Clearwater FHA loans tighten and it’s a new day after April 1st
- How Clearwater Beach Jumbo Loans are hurting buyers and sellers right now
- Tampa Condo loans effected by new Fannie Mae Guidelines changed for Florida
What can the History of Tampa / Clearwater Mortgage Rates teach us?
So, if you’re looking for the explanation of why recent Tampa /Clearwater mortgage rates rose as suddenly one day as they fell the day prior, this is it. And, in hindsight, Tampa bay mortgage rate shoppers might have seen it coming, if only because we’ve seen the exact pattern 4 other times:
- After the Fed’s “surprise” rate cut in January 2008
- After the Fannie Mae and Freddie Mac takeovers in September 2008
- After the Fed announced its first $500 in support in November 2008
- After the Fed zeroed out the Fed Funds Rate in December 2008
Sharp drops in mortgage rate, it seems, are followed by immediate bounce-backs.
Unfortunately, not every would-be refinancing Clearwater home owner saw the increase coming. People that locked captured the lowest rates in 6 decades. Everyone else wishes they had.
From day-to-day, we don’t know if Tampa mortgage rates will rise or fall. Nobody knows that. But, we do know that Tampa mortgage rates tend to follow patterns and we’ve seen the above pattern 5 times now.
When mortgage rates plunge like they did, they are rarely low for long. When you find a mortgage rate you like, get in and get locked as soon as possible. By tomorrow, it’s likely to be gone.
Thinking of Buying or Selling Property in Clearwater Beach Florida – We can help
If you have been thinking about buying or selling a waterfront or beach condo in the Clearwater St Pete Tampa Bay 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 © 2009 Jack and Cyndee Haydon, Clearwater Beach REALTORS and your Clearwater Beach Real Estate Consultants specializing in Clearwater Beach Florida and may not be copied, reproduced, distributed, transmitted, displayed or published.
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Clearwater Beach Florida Condos | Buyers and Sellers Hurt by Jumbo Loans
April 12th, 2009 Categories: Clearwater Beach Florida, Clearwater Florida, 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 Florida Home Owners – FHA isn’t Fooling April 1 Cash Out Refinancing toughens
March 27th, 2009 Categories: Clearwater Florida, Real Estate News, Tampa Mortgages
Clearwater Florida Home Owners – Act Fast on FHA Refinancing – No fooling
Clearwater Florida – If you own a home in Clearwater and want to do a cash out refinance using and FHA loan, think again, the most liberal cash-out program in town is about to make Tampa mortgage qualification more difficult.
Effective April 1, 2009, (yes I know it’s April Fools but this is no joke) the FHA is reducing the maximum loan-to-value on cash-out refinances by 10 percent, dropping the loan size limit from 95% of your Clearwater home‘s value to 85%.
In its official press release, the FHA says it’s making the change to “limit its exposure to undue risk”.
It also lists the following Clearwater home owner cash-out requirements:
- With less than 12 months since the purchase date, your home’s value cannot exceed its original purchase price — even if home improvements were made.
- A Clearwater home owner must be current on their mortgage payments to qualify
- A second, verifying appraisal may be necessary, depending on loan traits
- Co-signers may not be added to the FHA mortgage note in order to qualify
The last day to register a FHA 95% cash out refinance is Tuesday, March 31, 2009. The loan does not need to be “locked” — only registered.
So, if you know that a 95% cash out FHA refinance is in your future, talk to your Tampa home loan officer before Wednesday morning about registration. If you need to know the name of a good Tampa mortgage professional or two – just call or email me and I can help you out.
Buying a Home in Clearwater Florida – We can help
If you have been thinking about buying a home or condo now is a great time to buy in home in Clearwater
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 specializing in Clearwater Florida, Clearwater Beach Florida, and Pinellas County Waterfront homes and condos. This article may not be copied, reproduced, distributed, transmitted, displayed or published.
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