What we as a company have decided to do is absorb some of this risk to get these units moving. The condo market is a huge one for those who snowbird and/or seek a low maintenance lifestyle. We believe it needs a little support. So we are accomplishing this by reducing the down payment requirements pretty much across the board.
The No Bind Box is defined by precise latitude and longitudes and actually covers a considerable area. It encompasses Haiti, almost the entire Gulf of Mexico and as far north as Memphis.The “Buyer Beware” caveat to be conscious of here is that not all insurance providers will stop binding even if a “named storm” enters the box. They do however reserve that right.
In other words, 97% conventional financing truly does exist. We know that every single mortgage applicant’s situation is completely different ranging from their income, to credit history, to property type; but in many cases the approval of a conventionally financed home should not automatically be deemed unattainable with such a low down payment. I’ve been in this industry for years and years and have learned nothing should ever be assumed. Often compensatory factors can put a client within easy reach of an attractive interest rate or mortgage product.
The “existence of a closet” has always been the amenity Realtors reference. However, a listing agent recently had a home on the market as a 4/2/2. It was correctly assessed as a 3/2/2 at time of appraisal. And it wasn’t the closet in question in the fourth bedroom…it was the proximity of a bathroom.
The short sale process as we know it today is far more systematized than it was when these transactions began in earnest several years ago. The lenders in particular have gotten better in dealing with them. Overall, in addition to the Realtors who are becoming short sale certified, the other major players are getting in the game: