Florida Mortgage | Builders Focus on Value

This is a little departure from my normal posts that are mainly informational - call it an Opinion Piece.

The Real Estate Industry in Florida is hurting as evidenced in all the bad news being reported.  It isn't all bad, as the reporters would like you to believe.  Houses are selling because there are people that need to buy and there are those that are finding bargains already.

Now builders are spending their time marketing value and affordability into their homes... the reverse of the trend when they were marketing luxury and amenities.  Honestly, they should have caught on sooner.

Affordability... Value... Attainable... Steven Webster at the Florida Workforce Housing Network discusses how these new buzzwords are showing up in builders' marketing efforts.  He cites that Lennar challenged local builders to build affordably and Centex chose the path of becoming Florida's leading affordable housing builder. 

This article would not be complete without discussing the other side of the story... the Real Estate Industry has another industry that it works hand in hand with that needs to be a consideration of these builders - the Lending Industry.

You see... the big, production builders builders can control most of the costs related to the homes they are building.  What they can't control is mortgages.... only the market itself can do that!

My recommendation to builders is to keep in mind what buyers need - affordable payments.  This means making sure that the larger homes stay within conforming lending limits so that the interest rates stay low.  It also means to quit blackballing lenders and mortgage brokers from projects.  The buyer should have free choice of who they use and all the enticements from the advertisements to buy.

For buyers who will need 100% financing, builders should make sure to keep an eye on the median home prices in the area - that will be the lending limit for FHA, Fannie Mae and Freddie Mac 100% loan programs.  Builders could offer to pay closing costs up to 3% of the loan amount as an enticement for $0 down homes.

For more information about this trend, please follow this link to visit my main site: Florida Mortgage | Builders Price your homes appropriately

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More Florida Mortgage and Real Estate News You Can Use From
David A. Podgursky, MBA
TheMortgageGoToGuy.com
Your Source for Residential, Commercial, Investment and Relocation Mortgages in Florida

Florida Commercial Mortgage | Anthology of Posts

For those of you interested in, practicing, or investing in Commercial Real Estate in Florida or the rest of the United States, here are some posts that might help you understand more about the industry and how it affects both the owner occupant and the investor as well as the Realtors and the Mortgage Brokers that work in the industry.

Enjoy!

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Florida Commercial Mortgage | Investment Formula - Debt Service Coverage Ratio

August 28th, 2007

DEBT SERVICE COVERAGE RATIO or DSCR

What is it?
Who came up with this?
Why do we need to know another math equation?
How can it save a deal? or a client?

[Read more →]

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Florida Commercial Mortgage | Loans for Small Business ~ Underwriting Methodology

August 25th, 2007 

Commercial Mortgages for Small Businesses are a notably animal than Residential Mortgages.  Commercial Mortgages are based on three main criteria but there are many variables that can make those criteria flex based on the lender and their goals.  Yes… the Lender’s goals.
In Residential Finance, my goal is to take the borrower’s unique needs and match […]

[Read more →]

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Florida Commercial Mortgage | Just 3% Down - Small Balance Commercial Loans

July 1st, 2007 

So I was driving to a client and heard on the radio a commercial that played out like a skit

One guy was telling the other that he was expanding his business and needed a commercial loan.
The second one told him he just refinanced his commercial office condo and it was great.
Come to find out you […]

[Read more →]

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Florida Mortgage | Land Surveying Primer ~ Why you should order a survey every time!

July 29th, 2007 

ARE YOU BUYING A HOME OR AN ENCROACHMENT??
A Land Surveying Primer
Ok… I am a little biased right now. I grew up in a Real Estate Industry Family…specifically my parents own a Land Surveying Company.

I remember at 11-12 years old going in and doing tax book research and answering phones…yes I was a master of microfiche […]

[Read more →]

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Florida Commercial Real Estate: Redevelopment of Industrial Zoned Land in South Florida

May 23rd, 2007 

Who loses most when city planners rezone commercial land in order to make room for more housing? Is it the right of a citizen who moves into an area rich in industrial zoning to complain about trucks and businesses or is this a buyer beware issue?
In Boynton Beach, Florida there is a controversy brewing about […]

[Read more →]

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Florida Mortgage | Advice ~ Your Mortgage Advisor is WHO???

April 21st, 2007

Today’s Mortgage Industry is a vast, complicated landscape of amortization, interest calculations, equity lines and bond prices.
People are clamoring to get in on the profession but soon find that it is far more education intensive than they ever would imagine.
Just keeping up with the ever changing progams offered by the major lenders is a […]

[Read more →]

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More Florida Mortgage and Real Estate News you can use from David A. Podgursky, MBA
The Mortgage Go To Guy!!
Your Source for Residential, Commercial, Investment, and Relocation Mortgages in Florida  

Florida Mortgage| Real Estate Industry Commentary

When I first moved to the State of Florida, I was very surprised to find Realtors and Mortgage Brokers that were so busy and so successful that they would limit their businesses to loans, listings and buyers of over a certain dollar value.  The reason it was so surprising was that the dollar amounts that were mentioned were enormous to me. 

One listing agent I know would not work on listings under $650,000.   One Mortgage Broker said "No first time homebuyers".  I even knew of some agents that would not take anything but multimillion dollar listings or superstar, VIP buyers.

In this current market, changes are creating a new paradigm for Real Estate Agents and Mortgage Brokers everywhere.  There are many who are just leaving the field. They are just absolutely sure that there is no way to survive this market downturn.

Read the rest of this piece at: Florida Mortgage | Real Estate Market Commentary

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More Florida Mortgage and Real Estate News you can use from

David A. Podgursky, MBA
The Mortgage Go To Guy!!
Your Source for Residential, Commercial, Investment, and Relocation Mortgages in Florida