Here I've been, waiting patiently for the purse strings to loosen up just a bit here and there to better serve different situations and circumstances for Homeowners we serve throughout Pennsylvania. While I hope it never gets as ridiculous as it once was, there have been many products whose existence has turned into crusty fossils. Some of those products actually made sense, the kind that doesn't seem too common anymore. I keep tabs on all the Investors & Lenders & Banks I deal with, passing on information that may be helpful to anyone I know and those that they know. Minutes ago, I passed on this Press Release....
News Release
March 25, 2008
New Product Release: No Seasoning On C/O Refinance
First Choice Equity Group is currently in the midst of releasing a multitude of new programs through their Investors all designed to tap un-serviced markets.
"They Hope To Fill A Void Left By The Sub-Prime Fallout And Give REALTORS & BORROWERS Better Tools To Serve Their Market And Increase Their Financing Options."
Their latest product is a no seasoning c/o refinance. In essence you or your borrower can buy a home today... then turn around get a new appraisal and do a c/o refinance tomorrow.
Highlights of the "No Seasoning Product" are as follows:
Minimum FICO 590
Second homes
Owner occupied
No limit on C/O
Full doc only
For more information on this new program please call Jason (that's me:-) at 610-439-2166 ext. 229.
Also, please be on the look out for many new products to come.
Licensed with The Pennsylvania Department of Banking
Now, the predominant question will become, "Do you have this product for Investment Properties?" Well, not quite yet. This only applies for Owner-Occupied Properties or Second Homes. I don't know what the future holds but my guess is it will still be awhile before that product rises from the waters to re-surface within our Industry for Non-Owner Occupied Properties. Yet, this product can be very useful to those who are buying a property to live in that they may be buying under Market Value or that needs work to bring it up to par with the condition and values of similar properties within that particular area. If this situation applies to you, here's a few things that you'll want to address in why the Appraised Value is different/higher than the sales price....
- Perhaps you bought a Pre-Foreclosure or Distressed Sale of Any Type from a very motivated seller or bank that just wanted to unload it to get rid of the headache.
- Maybe you put substantial improvements (Updated Kitchen & Bathroom), added square footage, put on a new deck, etc. You'll want to make sure you save the receipts in case they want you to document the improvements that were made. Be sure also to have the appraisal handy when you first bought the property and it's probably a good idea to use the same appraiser when getting the house re-appraised.
- You could also have bought and rehabbed a property (I'll have more on Hard Money Rehab Loans down the road) and want to reimburse your pocket book for the cash you put out to Rehab the property. The no-seasoning cash-out refinance can be a wonderful exit strategy for such loans.
For the foreseeable future, I am of the educated opinion that niche products such as this will be in and out of play throughout the Industry. So, it's important to take advantage of them when they present themselves...before any changes are made to the product or it goes away temporarily all over again.
Sardi...
Today I had to take my continuing ed for my RE License.
One of the questions was in relation to mortgage products...
They were asking me to recommend a product.
There were 4 different answers to the question...I added a 5th that read...
"Seek the advice of a qualified Mortgage Professional"
Okay. So maybe I'll get that one wrong :)
...And I get points for sharing my day with you :)
TLW...ROAR!
Hey, Jason. Sounds like a great product! Why oh why do I always think you live in Washington State?!
TLW - Too funny! I bet you hit some extra credit points there!
Natalie...
There going to mark it wrong.
They'll probably chuckle when they do though :)
TLW...ROAR!
Your little press release is a very clever strategy in itself Mr. Sardiboy :-)
I appreciate hearing about new products, since I pretty much assume there isn't much left out there for unique financing options. I have clients who would sure benefit from this program.
Tell Natalie you will soon live very near to Washington State!! It will sure make my life a whole lot easier!
Mwa!
Geary - I remember the very idea behind that program, a tongue in cheek commentary on some of the very peculiar programs that were being being rolled out. As far as "Product is out there to help every potential mortgage client out there.", I agree and hope we never lose sight of that and its importance to the public we serve.
Beth - Funny seeing you here;-) Yeah, he definitely needs an editor...but the wisdom and ideas of Mr. Geary shouldn't be overlooked.
TLW - Actually, that's probably the Dead-On answer. Not bad my dear:-)
Bill - I think it was...
Sandra - What would you like it to be? Seriously though, it's all dependent upon credit scores and loan to value of what the borrower is looking to borrow. If the score is 700 and they are borrowing 80% of the new appraised value, you can expect an interest rate as of today in the mid 6's.
Natalie - I have no clue, until I'm licensed there....consider me for any PA friends you have:-)
TLW - Are you hijacking Localism Posts now:-) No contrived hijackings under my watch, leave that to those who missed their calling at local comedy clubs....
Jennifer - You and mine both my dear. MWA back at ya!
Matthew - I wrote months ago that I thought things would loosen up by spring....we'll have to see how much they do. I agree with you last sentence more than I could ever properly express.
We suspicious too that we may be close to that flat point. Donno exactly why, it's more of a feeling than something we've been about to document. Our last look at 365 day, 180 day, 90 day and 30 day sales results shows a leveling off... and another 180 days of that and it's documented.
We're also seeing an increase in the ratio of escrow to actives recently, but the number of monthly sales is lowere than normal and somewhat consistent. March should be much higher here than Jan. and Feb.
We're not seeing a lot of loan failure... most second home buyers are overqualified to begin with.
Will be interesting as the year continues.
Bet you're getting a healthy barrage of political ads, huh?
cheers
Gary - Makes you want to have a Crystal Ball at time, no? Political Ads....me? Heck, they quit with that when I
threatenedinsinuated that a new political party may be in order:-) Or, as George Washington said...and I'm paraphrasing, "Having no political parties at all."Erica - It really is and does help a lot of situations. Refi's are busy, yet some are still on the fence. I'm getting some individuals who are looking to buy as well, which is a smart move given the low rates and appropriately priced homes here in parts of Pa. I believe there is rarely a bad time to buy a home as long as your situation and priorities are in order and you are dealing with competent Real Estate Professionals looking out for your best interests.
Jason,
I'm not sure this applies but when we have sold a few of our own properties there was always an issue of having the loan season for anywhere from 3-6 months before they could close on the purchase. I'm not sure and never knew there were any issues with a refinancing of the loan.
Jason,
Looking for 'niche' products makes sense in this market...any port in a storm!!! Thanks, Fran
Sandra - It's funny how spoiled and unrealistic we've become in regards to Interest Rates. I've said it before and will say it again, "If you think a rate starting in the 5's or 6's is high, you are a natural born renter:-)"
Karen - Well, you have my digits and my email:-)
Neal - There have been issues when using the New Appraised value as opposed to the Purchase Price...the seasoning issues have always been a hit and miss as far as a product.
Danny - Email me, I may have the appropriate contact.
Fran - That's a fact man.
Jason - "Unique financing options." Those words scare me. I am in the process of getting better educated about your profession. But at this point I still suffer from a lot of the prejudice that I had entering the Realty profession.
I also believe the public is not as well educated and read as we hope (although for some of us that is Just Fine). I know two friends who lost their houses because they didn't know anything about the process and were too embarrassed to ask. They just signed and nodded their heads.
Dumb-asses? Of course. The norm? Probably.
It doesn't have to be that way. We (your profession, mine) need to educate customers as to what is happening and will happen with their money. Yes, I know. This is extremely controversial and gets in the way of getting their money.
Read the news. We've done enough damage.
As I answered on my blog in response to your comment, we are the new generation of Realtors and Mortgage Brokers. We do not have to reinvent the wheel, but maybe this time we don't have to roll them over the clients (over and over).
Thank for a lively discussion. On to your other posts :)
I think my heart just went pitter pat....I work with a couple investors who got caught hanging on to a rehab for much longer than they thought they would.
I'll pass this on...
Diane - You never know:-)
Jennifer - Hey, you may like it in Allentown hun:-)
Thesa - Deal, lunch is on you!
Abbie - I just emailed you their info, a former co-worker of mine is the Rep over there.
Larry - My guess is money will loosen up, slow but sure. My guess is that come this Summer, we will have a very different & more open financing market. My guess is that Common Sense will reign, at least for a year or three...Greed is the thing that seems to always bring us to this point.
Larry - Agreed, but I've seen nothing come out like this for Investment Properties ... which hurts some Investor's Exit Strategies.
Lola - Lol, I appreciate it my dear. Happy April Fool's Day!
Jason-I have to agree that these types of programs will be in and out...today we got some new guidelines for many parts of Florida...according to fannie mae...on single family homes...8% down...condo's 10% down...hope the general public has money to work with...congrats your post was selected for the bloggers choice selections.
Jacob - For some individuals, it really is! Thank you kind Sir.
Midori - Money to buy a home? Yup, you are right there. And these types of products will be in and out so for those who could be benefited from them, I advocate acting now.