Market Update: March 05, 2024

Market Update: March 05, 2024Inflation data comes in as expected, new home sales rise and home values continue to move higher. In this week's market update, we will provide a market wrap of what took place last week, important data we expect this week, and the current rate range for Conventional, FHA, and VA loans. Thanks,Michael OrtizThe Mortgage HUB

2 min Tuesday: Special Rate Alert | Help Your Clients Save Big Now!

Realtors and lenders are swimming against the current in this market. The media still holds control of buyer perception. In 2023, we had to battle the headlines of a looming market crash and declining prices, which proved untrue, and in 2024, we are battling the headlines of Fed rate cuts in the second half of 2024.Buyers are under the misconception that waiting to buy is the smart thing to do, but as professionals, we know that waiting for lower rates is a double-edged blade. It will drive up buyer demand, competition, and prices and cause buyers to pay the above-appraised value to win their offer.In the video above, I will illustrate how our graduated payment program will help get buyers waiting for lower rates off the fence and into the market now while they can still get a better price on the home than when rates drop.Market Update: March 05, 2024Please make sure to see this week's market update video below ⬇ or to the right ➡ of this presentation, depending on your device.Thanks,Michael OrtizThe Mortgage HUB

Market Update: February 27th, 2024

Market Update: February 27th, 2024With mixed inflation and employment data, interest rates have increased to their highest level in 2024. In this week's market update, we will discuss the state of the market and the important data that we should look out for later this week. Thanks,Michael OrtizThe Mortgage HUB

2 min Tuesday: 3 Major Condo Issues We Must Navigate In 2024

As property prices continue to rise in South Florida, more first-time home buyers will be looking to purchase condos with a low down payment. In this week's 2-minute Tuesday, we will cover the three major challenges we are experiencing in the South Florida condo market and the currently available solutions.Inadequate ReservesA lack of projects collecting at least 10% of reserves or their assessment income in the annual budget remains the most popular reason condos are not eligible for a low down payment. However, I have heard of some legislation in place at the beginning of 2025 that will require all condo projects in Florida to collect at least 10% in reserves.Currently, 50% - 60% of condo projects do not collect the minimum 10% reserves required by Fannie Mae, Freddie Mac, FHA, and VA to make a project eligible for approval.When purchasing a primary residence, the minimum down payment required is 10% of the purchase price when a buyer has at least a 680 credit and a debt-to-income ratio of 45% or less.Second homes and investment properties require a minimum down payment of 25% - 30% when a project does not qualify for the full review process.This is specific to Conventional loans.Assessments For Major RepairsSince the collapse of the Surfside building in 2021, legislation has been passed to ensure that HOAs meet the requirements to maintain a project's structural integrity. This legislation has obligated many projects to do major repairs to pass milestone inspections required by law.Assessments for major repairs are the most common reason a condominium may be deemed non-warrantable.Major repairs are considered anything related to the project's concrete, rebar, structural integrity, or safety.This can disqualify the project from Conventional financing altogether, leaving only Non-QM financing as a viable option.More than 5% Deductible In Master InsuranceThis is now a new obstacle we have seen rise quickly in popularity, and it is probably tied to the obstacle mentioned above. South Florida faces a huge issue with condo project insurance, and a deductible of 5% is becoming unaffordable for many projects.Disqualifies the project from Conventional financing altogether, leaving only Non-QM financing as a viable option.This is caused by the rise in condo project policy premiums when opting for a low deductible, leaving some projects no option but to increase the deductible to 7% - 10%.The issue is often discovered mid-way through the transaction when the condo questionnaire and master insurance policies are released to the lender.We have extensive experience working with condos, and we're happy to assist you and your buyer in navigating the biggest obstacles in condo financing that our market presents.Market Update: February 27, 2024Make sure to see our market update video below or don't the right of this presentation, depending on the device you're using to view it. Thanks,Michael OrtizThe Mortgage HUB

FHA Reduced Mortgage Insurance | How Will This Impact Your Business

Realtors, we have great news! The recent FHA mortgage insurance rate reduction will help increase affordability for new home buyers. With the recent announcement from HUD of a decrease in the annual mortgage insurance premium (MIP) for FHA loans from 0.85% to 0.55%, more consumers will benefit from using an FHA loan to accomplish homeownership. This drop of 0.30% can make a big difference, particularly for borrowers with below-prime credit scores. I have listed examples in this presentation to help you better understand the benefits. Please review the information below and let me know if you have any questions or would like me to help you create some content to send this information out to your database; I would be happy to help. I've also attached HUD's official announcement with the details below ( PDF ). ➡️ Old MIP vs. New MIPhttps://mcedge.tv/3yxtnt * This total cost analysis shows the differences between the old and new MI premiums. ..................................... ➡️ New FHA vs. Conventional Loan Comparison https://mcedge.tv/xy98ql *This total cost analysis highlights how FHA Loans could benefit buyers with a 720 FICO or lower. ..................................... ➡️ How The Reduction In MIP Increased Buying Powerhttps://mcedge.tv/5av7i6 *This total cost analysis shows how the decrease in mortgage insurance will increase buying power.

Top 5 Reasons Why You Should Purchase Today!

Hello, Many home buyers have the misconception that it is a bad time to purchase a home because rates are higher than they have been in the past 10 years. However, we want to show you why this may be the best buyer's market we may see for the next 3 to 5 years. Don't get us wrong. We understand that the rapid rise in rates has impacted affordability and has lowered your buying power or knocked you out of qualification. However, when rates were historically low in 2020, 2021, and the first half of 2022, many buyers had to overcome many different and substantially worse obstacles. However, we have different strategies to help you obtain below-market interest rates to improve the affordability of the home you qualify for or increase your purchasing power. In this video, I break down what is taking place in our market, show you the top 5 reasons it is a great time to buy in 2023, and help you better understand the domino effect taking place. ........................................... The 2021 & First Half of 2022 Market vs. The 2023 Market 2021& First Half of 2022 Market: Buyers with a minimum down payment were not considered because the sellers chose other buyers with higher down payments. Buyers competed against 10+ offers per property. Buyers had to place an offer before they could even see the home in person. Buyers had to take a lot of risk by releasing all loan, inspection, and appraisal contingencies. Buyers had to convert their contracts into "cash offers" to compete with other buyers even if they were not buying with cash. Buyers had to bid higher than the listing price to have their offer chosen. Buyers had to settle on whatever home came on the market. 2023 Market: Fewer Buyers, which means less competition. Buyers can write offers with and maintain their contingencies, protecting their deposit. Buyers with minimum down payments can purchase again. Buyers can get fair value or even undervalued properties with their offers. Buyers have more choices of homes than buying whatever comes to market. With help from lenders like myself, we can structure much better terms, like temporary or a permanent rate buydown.

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