Patricia Cobos Real Estate Advisor.

07/08/2023

HOUSING PROGRAM FOR FIRST TIME HOME BUYERS Staring July 1, 2023 OPEN to all, no more restricted to professions
- Haven’t owned in past 3 years
- Up to 5% of loan amount maximum of $35,000 in down payment and closing costs assistance.
- Offered as a 0% interest non amortizing, 30 years, repayable second mortage
- Minimum 640 Fico score
- Must work 35 hours a week minimum
- Employer must be a Florida based company
- Self employed might qualify too
- BROWARD COUNTY: $144,000 max income limit
- MIAMI DADE COUNTY : $154,800 max income limit
Patricia Cobos
Realtor Associate
Century 21
Capital Brokers
For more information Text me at 305-968-3927 or call me 561-396-3750

12/24/2020

A todos mis amigos mis mejores deseos para sus hogares

11/13/2020

NAR 3Q Sales Report: Home Prices Going Up Everywhere
By Kerry Smith
Two out of three (65%) metro areas had double-digit price gains in the July-Sept. time period, and single-family home sales rose in every area NAR tracks.
WASHINGTON – Every metro area tracked by the National Association of Realtors® (NAR) during the third quarter of 2020 saw home prices increase from a year ago, according to the association’s latest quarterly report.

Due in large part to record-low mortgage rates and a depleted housing inventory, median single-family home prices grew year-over-year in all 181 metropolitan statistical areas NAR tracks.

“Favorable mortgage rates will continue to bring fresh buyers to the market,” says Lawrence Yun, NAR chief economist. But Yun says even low interest rates won’t increase affordability “because housing prices are increasing much too fast.”

In 65% of NAR-tracked metros – 117 out of 181 – prices grew by double digits (10% or more) year-to-year. In comparison, only 15 metro areas recorded double-digit increases in 2020’s second quarter.

The biggest gainers in the third quarter were Bridgeport, Conn. (27.3%); Crestview, Fla. (27.1%); Pittsfield, Mass. (26.9%); Kingston, N.Y. (21.5%); Atlantic City, N.J. (21.5%); Boise, Idaho (20.6%); Wilmington, N.C. (20.6%); Barnstable, Mass. (19.4%); Memphis, Tenn. (19.1%); and Youngstown, Ohio (19.1%).

Nationally, the median existing single-family home price climbed 12.0% on a year-over-year basis to $313,500.

In addition to the metros, all four major regions tracked by NAR saw double-digit year-over-year price gains, led by the West (13.7%) and followed closely by the Northeast (13.3%), the South (11.4%), and the Midwest (11.1%).

That means that home prices grew four times faster than median family income (up 2.9%) in the third quarter of 2020.

“In light of the pandemic, prices jumped in a number of metros that contain larger properties and open space – where families could find extra rooms, including areas for an at-home office,” says Yun.

At the end of the third quarter, 1.47 million existing homes were available for sale – 19.2% less than total inventory at the end of 2019’s third quarter. In September 2020, housing inventory totals were equivalent to 2.7 months at the current sales pace.

With higher home prices, the monthly mortgage payment on a typical existing single-family home – one financed with a 30-year fixed-rate mortgage and 20% down payment – rose to $1,059 in the third quarter, and increased from $1,019 quarter-to-quarter and $1,032 year-to-year.

At the median U.S. family income of $81,477, mortgage payments accounted for 15.6% of income in the third quarter, an increase from the second quarter share of 14.8% but unchanged from the share one year earlier. The effective 30-year fixed mortgage rate averaged 3.01% in the third quarter, down from the second quarter (3.29%) and one year ago (3.71%).

With home prices continuing to rise, families needed roughly $50,819 in annual income to comfortably afford a mortgage on a typical existing single-family home, up from $48,912 in the second quarter and $49,536 this time last year. A 30-year fixed-rate, 20% down payment mortgage is considered affordable if the mortgage payment accounts for no more than 25% of a median family income of $81,477.

“As home prices increase both too quickly and too significantly, first-time buyers will increasingly face difficulty in coming up with a down payment,” says Yun. “Transforming raw land into developable lots and new supply are clearly needed to help tame the home price growth.”

08/15/2019

New Rule Will Approve More FHA Loans for Condos
From Florida Realtors
On Oct. 15, the state's condo market could really open up to first-time buyers after FHA issued new mortgage rules that qualify more condo complexes and units for FHA loans.
WASHINGTON – On Oct. 15, the Fla. condo market could open up for first-time buyers after Oct. 15, 2019, after the Federal Housing Administration (FHA) issued new mortgage rules that will qualify more condo complexes and units for FHA loans.

The new FHA condominium approval regulation – and a new Condominium Project Approval section of the Single Family Housing Policy Handbook – are a comprehensive revision to FHA condominium project approval policy.

The policy released by the U.S. Department of Housing and Urban Development (HUD), which oversees FHA programs, was published in the Federal Register on Thursday, Aug. 16, and becomes official 60 days after publication.

Of special interest in Florida, which has a preponderance of condo units, is a new policy that will make some individual condominium units eligible for FHA mortgage insurance even if the condominium project isn’t FHA approved.

“Florida is ground zero when it comes to condominium sales but these markets have been impacted by certain federal rules,” says 2019 Florida Realtors President Eric Sain, a Realtor and district sales manager with Illustrated Properties in Palm Beach. “The changes being proposed by HUD will go a long way in allowing flexibility in these markets and help more hard-working Americans achieve the dream of homeownership.”

“It goes without saying that condominiums are often the most affordable option for first-time homebuyers, small families and those in urban areas,” says National Association of Realtors® (NAR) President John Smaby. “This ruling, which culminates years of collaboration between HUD and the National Association of Realtors® (NAR), will help reverse recent declines in condo sales and ensure the FHA is fulfilling its primary mission to the American people.”

The new rule, once effective:

Introduces a new single-unit approval process to make it easier for individual condominium units to be eligible for FHA-insured financing
Extends the recertification requirement for approved condominium projects from two to three years
Allows more mixed-use projects to be eligible for FHA insurance
The majority (84%) of FHA-insured condo buyers have never owned a home before. While there are more than 150,000 condominium projects in the U.S., only 6.5% are approved to participate in FHA’s mortgage insurance programs. Under the new policy, FHA estimates that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing every year.

“Florida Realtors has been working with NAR on this matter for some time now and we are excited to see the results of those labors finally bearing fruit,” says Sain. “Many congratulations to NAR for staying diligent on the issue and communicating so well with members at HUD to explain the problem and find sensible solutions.”

Single Family Policy Handbook guidance

To complement the FHA condo change, a new Single Family Handbook section provides the additional requirements lenders need to implement FHA’s new policy, including requirements for single-unit approvals, minimum owner occupancy requirements, and commercial/non-residential space limits.

Single-unit approvals

After Oct. 15, FHA will insure mortgages for selected condominium units in projects that aren’t approved under current rules. An individual unit may be eligible for Single-Unit Approval under the following conditions:

The individual condominium unit is located in a completed project that is not approved
For condominium projects with 10 or more units, no more than 10% of individual condo units can be FHA-insured, and projects with fewer than 10 units may have no more than two FHA-insured units
Minimum owner-occupancy requirements

FHA will require that approved condominium projects have a minimum of 50% of the units occupied by owners for most projects.

FHA insurance concentration in condominium projects

FHA will only insure up to 50% of the total number of units in an approved condominium project.

04/30/2019

Reverse mortgages carry big risks

NEW YORK – April 29, 2019 – TV commercials label reverse mortgages simple fixes for elderly homeowners needing cash – a financial easy button.

Sorry, there is no such thing.

Yes, reverse mortgages can be attractive. Folks older than 62 can unlock cash from their home without selling. They can simply draw monthly income, a line of credit or lump sum from their home equity, with no repayment until the home is no longer their primary residence. Staying current requires covering property taxes, homeowners insurance and maintenance.

But be careful. Read the fine print. This isn't money you lend yourself. It's a loan using your home equity as collateral. That means interest, typically at a high rate, plus other fees and costs. Worse than paying that interest monthly, it compounds, magnifying what you owe. When you sell, you repay the principal plus all compounded interest.

Elderly retirees need their finances to be simple, clear and available until they die. Reverse mortgages' ballooning costs can cut against those basic needs.

Reverse mortgage calculators show interest's huge impact. Pretend you did one borrowing $2,000 per month for 10 years – $240,000 in total. At a 4.5 percent interest rate, your total due after 10 years would $303,530 – before fees. That's $63,530 in interest alone. Bump it to 20 years of payments and your final bill is $779,160 – $480,000 in principal plus $299,160 in interest. Thirty years? You owe $1,524,468. Less than half of that, $720,000, is your principal. The majority is interest. The longer, the uglier – until your home's entire value is the lender's.

These loan amounts aren't realistic for everyone. They're illustrative, showing the key risk: underestimating your life expectancy, living far longer than you anticipate, and ending up aged and broke, unable to meet late-life health expenses. If you're in great health with a good family history, you could live into your 90s or beyond. Planning for a longer life is key to not exhausting your money. Reverse mortgages often do the opposite, with perverse incentives. The longer you live, the bigger the lender wins, while your compounding interest burden balloons. Do you really want to be cash-strapped and in debt while trying to fund late-life care?

Some disagree, arguing reverse mortgages can insure against depleting your savings before you die, working alongside an investment portfolio. They can. This view rightly considers folks' assets in totality, rather than in buckets, avoiding a common error.

But it requires the elderly to invest well. Are you a strong investor? Will you be? Are you willing to risk being forced to sell your house late in life to cover a ginormous compounded interest debt, hoping there is enough left to live off of? At an age when most people need simplicity and ease, this seems unwise.

Beware products charging big fees for something you can do easily with cheaper, more simple investments. If you're younger, save now and invest in your 401(k), reaping compound growth's rewards rather than having them work against you. Stay invested throughout retirement without excessive binge-type withdrawals.

More security, less debt. Wouldn't you rather have that control?

Ken Fisher is founder and executive chairman of Fisher Investments, author of 11 books, four of which were New York Times bestsellers, and is No. 200 on the Forbes 400 list of richest Americans. The views and opinions expressed in this column are the author's and do not necessarily reflect those of USA TODAY.

Copyright 2019, USATODAY.com, USA TODAY, Ken Fisher

USA TODAY delivers current local and national news, sports, entertainment, finance, technology, and more through award-winning journalism, photos, videos and VR.

04/29/2019

What if my house is legally owned by my sick mother?

FORT LAUDERDALE, Fla. – April 26, 2019 – Question: My credit was damaged because of divorce, so my mother helped me buy my house by putting it in her name. I have lived here for 11 years and always paid the bills. I am concerned because she has dementia and her health is failing. Should I have her deed the house over to me? – Sally

Answer: In my experience, I have spoken with many people in your situation. From a legal perspective, this is not the right place to be for both you and your mother. Besides that obvious caution of not being upfront with your lender, she could be sued if someone gets hurt on your property or if you miss a few mortgage payments. Plus, you are paying for a home that you do not own.

While I understand that both you and your mother may agree that it's your house and not hers, this is not the case for the rest of the world. When your mother dies, your siblings will have a claim to your home if she does not have an adequately prepared will or another planning tool. Even then, if she leaves behind creditors, they may have a claim against the equity in the house.

Usually, I would suggest that you buy your house from your mother by taking out a new mortgage loan and having her deed the house over to you. If this was not possible for credit reasons, planning documents, such as a living trust or lady bird deed, might do the trick.

You stated that your mother has dementia, and if she is no longer of sound mind she will not be able to sign any documents to assist with this process. If she has already planned her estate and granted someone her durable power of attorney, that person may be able to help. If not, you may be out of luck and have to deal with the consequences of poor planning.

I strongly suggest that you contact an experienced estate planning profession without delay to explore whatever remaining option you may have.

About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He practices real estate, business litigation and contract law from his office in Sunrise, Fla. He is the chairman of the Real Estate Section of the Broward County Bar Association and is a co-host of the weekly radio show Legal News and Review. He frequently consults on general real estate matters and trends in Florida with various companies across the nation.

© Sun Sentinel (Fort Lauderdale, Fla.), Gary M. Singer. Distributed by Tribune Content Agency, LLC.


Related Topics: Lega

04/25/2019

Prices for mega-mansions in Miami Beach surge 61%

NEW YORK – April 24, 2019 – The median single-family home price in Miami Beach's luxury segment – defined as the top 10 percent of transactions ranked by sale price – climbed 61 percent to $10.1 million in the first quarter on a year-over-year basis.

According to Miller Samuel President Jonathan Miller, the increase came as the new tax laws shifted demand away from other state's high-end property markets.

Miller says nine "mega-estates" sold in Miami Beach and the surrounding islands in the first quarter, with the five most-expensive properties ranging in size from 8,000 to more than 14,000 square feet, and the most expensive selling for about $25 million. Four of the top five buyers paid in cash.

"The new federal tax law was the impetus for a significant surge in demand for large-size homes in the Miami Beach area in the first quarter," says Miller. "I explain it by saying: Americans from the Northeast are the new foreign buyers for Miami Beach, because they are fleeing a region that was specifically hit by the new tax law's $10,000 cap on the deductibility of state and local taxes."

He says the average price per square foot of a luxury single-family property in Miami Beach was $1,524. The so-called listing discount – the difference between the asking and selling price – fell from 18 percent to 12 percent, and listing inventory plummeted 39 percent to 152 homes.

Miller says these upscale buyers had to pay at least $7.25 million – an increase of 71 percent from a year ago – to even enter that segment of the market.

Source: HousingWire (04/22/19) Howley, Kathleen

© Copyright 2019 INFORMATION INC., Bethesda, MD (301) 215-4688


Related Topics: Trends

04/24/2019

390

Fla.’s housing market: Pending sales, median prices up in March

ORLANDO, Fla. – April 22, 2019 – Florida's housing market reported more pending sales, higher median prices and increased inventory (active listings) in March compared to a year ago, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide totaled 25,013 last month, about the same level as March 2018.

"Along with low mortgage rates, the pressure on home prices is easing due to increased inventory, which is a positive trend for housing affordability and could encourage some buyers to enter the market,"says 2019 Florida Realtors President Eric Sain,

In March, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for the 87th month-in-a-row. The statewide median sales price for single-family existing homes was $256,000, up 2 percent from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month'sstatewide median price for condo-townhouse units was $189,500, up 3.6 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors(NAR), the national median sales price for existing single-family homes in February 2019 was $251,400, up 3.6 percent from the previous year; the national median existing condo price was $534,140; in Massachusetts, it was $377,000; in New York, it was $280,000; and in Maryland, it was $273,762.

Looking at Florida's condo-townhouse market in March, statewide closed sales totaled 10,340, down 6.1 percent compared to a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

According to Florida Realtors Chief Economist Dr. Brad O'Connor, March is typically a busy month for real estate in Florida and March 2019 was no exception.

"On a statewide basis, more homes typically go under contract in March than in any other month of the year," O'Connor says. "And compared to March of last year, new pending sales of single-family homes this March were up by 2.6 percent to a total of 31,383. In fact, this is the highest number of new pending sales we've seen in any month across the previous 11 years in which Florida Realtors has tracked this statistic.

"New pending sales in the condo and townhouse category, by the way, were also up, rising by one percent from last March's total. Of course, not all homes that go under contract end up as closed sales, but this is a pretty good sign for the market going into spring."

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.27 percent in March 2019, compared to the 4.44 percent averaged during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Research & Statistics section on floridarealtors.org. Realtors also have access to local market stats (password protected) on Florida Realtors' website.

© 2019 Florida Realtors®

Florida Realtors®, The Voice for Real Estate in Florida®