...from the desk of our founder...
Thoughts & Musings
Like most things, over time renting is not cost effective. As the distribution system for consumer goods shifts from retail locations to home delivery, more warehouse and logistics space will be needed. Short term financing while rates are still affordable might be the answer a seasoned investor may be looking for.
https://therealdeal.com/miami/2017/08/04/is-it-amazon-fever-miami-dades-industrial-market-booming-rental-rates-skyrocketing-report/
While Latin Americans are still hungry for Miami real estate, an Eastern European country popped up on a September report tracking web searches for South Florida homes: Ukraine.
Buyers from Colombia again led foreign interest in Miami homes in September, marking the seventh consecutive month the South American country has led the Miami Association of Realtors’ list.
Colombians represented 11.4 percent of all international web searches on MiamiRealtors.com in September, the same month Hurricane Irma hit the Florida Keys.
Canada ranked second with 10.4 percent of searches, followed by Ukraine with 5.5 percent and Venezuela with 5.2 percent. The top three international cities visiting the association’s property search website were: Ontario, Canada, Bogotá, Colombia, and Kiev City, Ukraine.
Check out the top 10 list of countries looking for Miami homes in September:
As the world in general knows, the state of Florida and south Florida specifically, just experienced one of the biggest hurricane in history. Understandably this has led to a few delays, but we were here weathering the storm, and surprisingly barely missed a beat. 48 hours later we are back and fully operational.
However… Fannie Mae and Freddie Mac, the cornucopia from which all lending flows, has issued a set of new criteria for all loans in the post-Irma aftermath, rather euphemistically referred to as “Affected Areas Supplement”.
In summation, these policies are in force for all loans not yet closed at the time of the disaster and these policies will continue for 90 days after the disaster.
Basically, any Conventional or FHA loan will require a certification from the ORIGINAL APPRAISER and the completion of a Form 2070/2075/1004D certifying that:
1. The property has not sustained any flood, tornado, or wind damage AND
2. Interior AND exterior photographs and
3. Statement on the neighborhood conditions as they relate to flood, tornado, or wind damage.
This re-inspection is the responsibility of the borrower and the fee will be reflected on the closing statement.
…and before you ask, this is coming from Fannie/Freedie so there is no way around it and no appeal.
So… there have a been a lot of changes recently in both Conventional and FHA Guidelines. Things are getting… easier? Maybe not easier, but restrictions are definitely loosening. Somewhat.
Sometimes.
In places where a large segment of the population may not have the best credit score, may not have a long employment history, or may not have the required number of trade-lines open to qualify for FHA, like Miami, FHA has just come out with several new requirements.
· FHA and VA have entirely eliminated the need for minimum trade-lines (the old requirement was three).
· The waiting time after a foreclosure is completed to re-qualify for an FHA mortgage has been shortened from 4 years to 3 years. (*with a 640 minimum credit score)
· The waiting time after a Chapter 7 bankruptcy has been discharged has been shortened from 4 years to just 2 years. (*with a 640 minimum credit score)
· If you do not have a credit score that is reporting:
o A 43% maximum DTI (Debt-to-Income) ratio is necessary.
o A co-borrower is required who must have a minimum 640 credit score.
o There must be 3 non-traditional credit references
Depending on how reliant any finance or loan professional is on automated underwriting systems, they will very likely get an “refer” result from their software, which they will interpret as the end of the road. But if your advisor knows the ins and outs of the system this can be easily overcome.
As always, we’re here to help.
Today we are honored to have been invited to an event in support of Francis Suarez, the next Mayor of our beautiful home of Miami, Florida. At this gathering we hope to discuss how Ocean Capital Funding can offer financing possibilities to Japanese clients through our extensive Foreign National investment programs with the Consulate General from His Majesty the Emperor of Japan, Hon. Mr. Ken Okaniwa.
Our site has officially launched. Please check back soon for an interesting take on the state of the industry.
