Category: Mortgage (Page 20 of 59)

Announcing New Investor Specific Financing Options

July 28, 2022 / Tom Bonetto

I’m glad to announce that we now have investor specific financing options in the residential income producing space…both long-term and short-term financing available, ranging from 1 to 20 units.

silver macbook beside white pen on black table

These products are tailor-made for real estate investors with income producing properties.

Finance of America Commercial, a division of Finance of America Mortgage LLC, provides individual and business exposure limits with individual FIX & FLIP rehab property loans, along with BRIDGE loans, NEW CONSTRUCTION loans, and SINGLE & PORTFOLIO RENTAL term loans to residential real estate investors across the country.

These offerings have helped clients overcome traditional financing hurdles and build long-term wealth through real estate investment.

These specific lending products and tools are designed with the real estate investor at the forefront – to help provide the personalized service investors need.

Income Producing Property/Portfolio Loans – 2 to 20 units

30-year term available
Full amortization and interest only options
Loans from $200K to $5M
Funding up to 80% on purchases and rate/term refinances

Fix and Flip Loans

Funding up to 95% of acquisition and rehab costs
Max loan-to-value 75% based on ARV
Interest accrual on drawn balance
12- and 18-month term options

Bridge Loans

Individual property loans up to $3M
Funding up to 80% LTC on multi-family
Payoff other loans or lenders on completed flips or new builds
Ideal for light rehab flips when self-funding cosmetic rehabs

New Construction Loans

12–18-month term for build ready lots in urban locations
Funding up to 100% of construction budget and 80% LTC/65% LTV for multi-unit
Funding up to 90%/75% LTV for experienced builders (conditions apply)
Business purpose loan with no income requirements

Options with FACO and Eligible Properties

Would you like to find out more? Contact me to discuss your current situation and how you might be able to take advantage of these fantastic financing options. It would be my pleasure to help you!

Inflation and Real Estate – Should Buyers Wait? History Says “NO!”

July 23, 2022 / Tom Bonetto

Inflation is hot…and so is real estate. But what does the future hold for both?

As we’ve talked about before, the Federal Reserve is late to the party in dealing with inflation and the latest data shows the rate of inflation is still rising.

Many are feeling the pinch in their wallets, at the gas pump, and at the grocery store.

For would-be real estate buyers that just begs the question…is now a good time to purchase a home?

I’m linking to an article from the real estate blog Keeping Current Matters, and the author does a great job in highlighting why now might be a very good time to buy. You can access the entire article here…

Greg McBride, the Chief Financial Analyst at Bankrate, explains how inflation is affecting the housing market:

“Inflation will have a strong influence on where mortgage rates go in the months ahead…Whenever inflation finally starts to ease, so will mortgage rates — but even then, home prices are still subject to demand and very tight supply.”

While there’s no denying it’s more expensive to buy and finance a property this year than it was last year, it doesn’t mean potential buyers should pause their search. Here’s why…

History Says So – Real Estate Is A Great Hedge Against Inflation

During periods of inflation, prices generally rise across all areas of the economy.

Historically, however, real estate ownership is a fantastic protection against those increasing costs because buyers can “lock-in” what’s likely the household’s largest monthly fixed cost for the duration of your loan.

Not to mention, as property prices continue to appreciate, the home’s value will, as well.

That’s why Mark Cussen, Financial Writer at Investopedia, says:

“Real estate is one of the time-honored inflation hedges. It’s a tangible asset, and those tend to hold their value when inflation reigns, unlike paper assets. More specifically, as prices rise, so do property values.”

Secondly, nearly all industry experts agree that although the current rate of home appreciation can’t stay this hot, the likelihood of homes losing value is extraordinarily slim. As Selma Hepp, Deputy Chief Economist at CoreLogic, says:

“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”

Warning Sign with Arrow Labeled Inflation

In Conclusion

Purchasing real estate is one of the best financial decisions that can be made during inflationary times. Buyers also receive the advantage of the added security of owning their property in a time when experts are forecasting prices to continue to rise.

If you are considering a purchase, your real estate search shouldn’t go on hold because of rising inflation or higher mortgage rates. Contact me for more…as it would be my pleasure to help you.

Real Estate Survey: Current Housing Market Conditions – July 2022

July 18, 2022 / Tom Bonetto

One of the top real estate and mortgage analysts, The MBS Highway, surveyed over 3,000 mortgage and real estate professionals around the county for current housing market conditions.

white and brown house under clear blue sky

The results were in line with what many experts are seeing, as mortgage rates and inventory are starting to impact the market.

The Survey

The national results for the July 2022 release showed that 66% of respondents reported their market was still active to very active. 33% saw moderate to significant pricing pressures.

Of those that said activity was slower, many cited that it was due to a lack of inventory.

Out in the west and southwest, things seem to be a bit slower, however. Those surveyed see the market slower or normal, versus rapidly expanding.

Many are still seeing multiple offers, but less than previously. Overall, demand is still outpacing supply, but to a lesser extent.

Housing Market Update: Balance Beginning to Return

July 11, 2022 / Tom Bonetto

Scale with One Large Ball and Many Small Balls that are Tilted toward the Small Balls

I’m linking to a great article regarding today’s housing market. Essentially, climbing housing costs caused many house hunters to drop out in recent months, which is now providing some relief for the buyers who remain.

‘Homebuyers are getting some relief as sellers slash their prices at a record rate and mortgage rates drop following months of increases’ – Tim Ellis, Market Analyst

Tim Ellis is a housing market analyst with Redfin, and the entire article can be found here…

Activity

Leading indicators of homebuying activity, per Ellis:

For the week ending July 7, 30-year mortgage rates fell to 5.3%—the largest 1-week drop since 2008. This was down from a 2022 high of 5.81% but up from 3.11% at the start of the year.

Fewer people searched for “homes for sale” on Google—searches during the week ending July 2 were down 2% from a year earlier.

The seasonally-adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other home-buying services from Redfin agents—was down 15% year over year during the week ending July 3.

Desk with Laptop, Notebook, Pencils, and Coffee

Touring activity as of July 3 was down 14% from the start of the year, compared to a 7% increase at the same time last year, according to home tour technology company ShowingTime.

Mortgage purchase applications were down 17% from a year earlier during the week ending July 1, while the seasonally-adjusted index was down 4% week over week.

“Conditions for homebuyers are improving. Housing remains expensive, but mortgage rates just posted their biggest weekly drop since 2008, which makes buying a home a bit more affordable,” said Redfin chief economist Daryl Fairweather. “One way buyers can take advantage of the shift in the market is seeking concessions from sellers. That could include asking the seller to buy down your mortgage rate, pay for repairs or cover some of your closing costs.”

The Data

A few other key facts regarding today’s housing market, from Ellis’ analysis:

The median home sale price was up 13% year over year to $396,000. This growth rate is down from the March peak of 16%.

The median asking price of newly listed homes increased 15% year over year to $399,973, but was down 2.1% from the all-time high set during the four-week period ending June 5.

New listings of homes for sale were down 1.4% from a year earlier.

Active listings (the number of homes listed for sale at any point during the period) fell 2% year over year—the smallest decline since October 2019.

45% of homes that went under contract had an accepted offer within the first two weeks on the market, down from 49% a year earlier.

Also, pending home sales were down 13% year over year, the largest decline since May 2020.

On average, 7% of homes for sale each week had a price drop, a record high as far back as the data goes, through the beginning of 2015.

In Conclusion

Would you like to find out more? Contact me to discuss your current situation and how you might be able to take advantage of today’s market. It would be my pleasure to help you!

Home Prices and Home Sales – Mid-Year Update

July 6, 2022 / Tom Bonetto

More data has been released on both home prices and home sales…and the numbers are fascinating.

The numbers are a month or two behind, due to the time it takes to gather and report the information, but the trends are clearly visible.

Home prices are continuing to appreciate, although the number of sales is declining year-over-year.

Home Prices

The National Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices rose 2.1% in April and 20.4% year over year, which is basically flat from the previous report…but still blistering hot.

Percentages from Case Shiller of Home Price Index

The FHFA (Federal Housing Finance Agency) released their House Price Index, which measures home price appreciation on single-family homes with conforming loan amounts.

While you can have a million-dollar home with a conforming loan amount, it’s typically measuring your mid-priced homes.

Prices rose 1.6% in April and are up 18.8% year over year, which is a slight decrease from 19.1% in the previous report, but also extremely hot.

FHFA House Price Index in March and April 2022 and April 2021-April 2022

“House price appreciation continues to remain elevated in April,” said Will Doerner, Ph.D., Supervisory Economist in FHFA’s Division of Research and Statistics.

“The inventory of homes on the market remains low, which has continued to keep upward pressure on sales prices. Increasing mortgage rates have yet to offset demand enough to deter the strong price gains happening across the country.”

Home Sales

Pending Home Sales, which measures signed contracts on existing homes, rose 0.7% in the month of May. This was much stronger than the 4% decline expected, but sales are still down 13.6% year over year.

There is no doubt that higher interest rates are impacting demand, but this report does include the majority of the rise. Additionally, the fact that sales were higher with the rise in home prices and lack of inventory clearly shows that the purchase market still remains strong.

New Home Sales, which measures signed contracts on new homes, were up 10.7% in May to a 696,000 annualized pace, which was above expectations.

The report is actually stronger than it appears as there was a positive revision to the previous month. When factoring that in, sales are up 18% from the initially reported number. Year over year sales they are down 5.9%. There were 444,000 homes for sale at the end of May, but only 37,000 or about 6% are actually completed. The rest are either not started or under construction.

The median home price remained steady at $449,000, which is up 15% year over year and points to an increase in higher priced homes sold. The Average priced home came in at $511,400, which is up 16% from last year.

In Conclusion

Would you like to find out more? Contact me to discuss your current situation and how you might be able to take advantage of today’s market. It would be my pleasure to help you!

Category: Mortgage (Page 20 of 59)

Announcing New Investor Specific Financing Options

Inflation and Real Estate – Should Buyers Wait? History Says “NO!”

History Says So – Real Estate Is A Great Hedge Against Inflation

In Conclusion

Real Estate Survey: Current Housing Market Conditions – July 2022

The Survey

Housing Market Update: Balance Beginning to Return

Activity

The Data

In Conclusion

Home Prices and Home Sales – Mid-Year Update

Home Prices

Home Sales

In Conclusion

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