Condo Financing Available In Tallahassee
One of the major problems that is slowing buyer activity in the housing market has been the tightening of mortgage lending standards. For the past six months, there has been a great difficulty in finding a lender willing to do condo financing in Tallahassee, but finally there are signs that this is starting to change and a fix for the housing market might be underway..
Another mortgage lending problem is finding lenders willing to do loans with a combined loan to value (CLTV) of 100%. This means that the lender will allow secondary lending to account for the down-payment or equity portion of the purchase. The reason that this is so critical in today's real estate market is that so many homeowners have little or no equity, so once they sell a home and want to purchase another, they often times have great credit and a great payment history, but no cash for the equity portion of the purchase.
By re-establishing the 100% CLTV loans that worked successfully for many years prior to the housing market boom, we will see an increase in the number of qualified buyers in the market. This has been sorely missed and could very well be a required piece of the cure to the current housing market woes.
Note: If you are thinking "this is what caused the housing market to crash in the first place ..." No, 100% financing from a single lending source caused the majority of the housing problem. By sharing the risk, the primary mortgage lender has very limited exposure, meaning somebody else will have to bear the risk of default. Often times, this will be the home seller, not a bank.
How To Get Condo Financing In Tallahassee
If you want to take advantage of a great short sale condo in Tallahassee but do not have enough cash for purchase, I have some good news for you. Yesterday, Robert Barnette with Hancock Bank, briefed my Joe Manausa Real Estate office about a new loan program that their bank is offering. They can provide condo financing in Tallahassee, and their new loan programs allow for a CLTV of 100%, meaning buyers with very strong credit histories do not need cash to close on a new condo in Tallahassee.
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