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Spoke to a few lenders. One gave me a good suggestion.
Please email me.
I'll check with a few portfolio lenders and get back.
Condo. Probably need a mortgage of around $1.75-2.0 million. Thanks.
Is it a condo or co-op and what is the purchase price?
Ellen a Silverman
E. S. Funding Co
Licensed Mortgage Broker since 1990 NMLS#60631
I'm looking at buying an apartment that won't qualify for a traditional mortgage because there is not currently a legal kitchen (as if that should matter in NYC). The banks that I've spoken to thus far say that they got out of the construction loan part of the market after the GFC. Any ideas on a bank that would loan us the capital? I'm expecting to put a down payment in the order of 1/3 of the purchase price. I would also have sufficient funds set aside for the required renovations, which together with the down payment, would represent about 50% of the purchase plus renovation.
just locked a 3.25% 30 year fixed loan for intial purchase at BOA yesterday. rate will be 3.00% after relationship discount for moving $500k in post closing funds.
and what were the closing costs? for our 3.625% from Wells Fargo our total closing costs after rebates etc was $3850
3.25% ??? that's an amazing rate, who did you deal with there.
Are you sure that's for a 30 year fixed Jumbo?
I got 3.25 no points jumbo refinance from BANK of America last thursday
New2re how much "off the listed rate" did you get?
We are thinking of refinancing with Wells Fargo from our current 4% and they've offered us 3.635% with "zero points" but there is still $5123 of various costs and taxes etc
Wondering if we should hold off on the refi as we'll be able to get a better than 3.625% rate.
refinance 1.3 value , 910 balance
30 y fixed jumbo , BOA last Thursday 3.25
anyone want to jump in here with some current 30 year jumbo offers?
we've been offered 30 year jumbo, 740 ,3.625% with $5100 closing costs (they said $4k rebate....but seriously 5k in costs getting a joke).
This is for a $975k refi on 1.75m coop so neither equity or serviceability is an issue.
Bernie, Curious if they gave you an estimated closing date?
(30 year vanilla terms)
Guaranteed Rate twice provided better rates from banks than I got directly from the same banks. That said, recently, Wells Fargo has given me the best rates on jumbo loans. I would use a broker AND call the big banks separately (Wells, Bank of America, Chase, Citi).
Thank you Ellen. Yes we employ a different take on the brokerage biz.
The Burkhardt Group
Keith, you seem like a very conscientious broker, and I never doubted you. That's why I made my comment so you could clarify what I already knew.
Also want to mention that I recently had a Banking Examination and a new item was required prior to the exam and that is I had to list every loan I did and the source for that loan. If it was a referral from a real estate broker I was required to give the name of the firm and the address.
@Ellen seems this is a risky proposition. We have always taken the position of accepting no referral fees from any vendor.
This is what I am referring to :QUESTION: Is there a way to structure a marketing services agreement (“MSA”) that complies with RESPA?
ANSWER: RESPA permits the marketing of other settlement services by another settlement service provider so long as the payments made for these services represents the fair value for the services provided. A lawful MSA will need to contain the following elements: first, the real estate professional can perform services for other companies in the same field of business (i.e., the agreement is not exclusive); the compensation is not based on the volume of business, but rather on the value of the services provided by the real estate professional; a written contract between the parties which documents the services to be provided pursuant to the agreement; and a written disclosure is provided to the consumer describing the real estate professional’s role in selling the third-party service. That said, CFPB has been active in initiating enforcement actions in this area and appears to take the view that these agreements are going to almost always be an improper referral fee, so anyone entering into a MSA will need to be exercise extreme caution.
I have a number of lenders who do jumbo loans.
Need more particulars: loan amount, established condo or new development?
E. S. Funding co.
Licensed Mortgage Broker since 1990, NMLS#60631
Licensed Real Estate Broker since 1987
Try Mitchell Steinberg (WFHM) @ steinbergmortgage.com.
He's done jumbos, refi's and conventionals for my whole family. Competitive rates, no BS and NO- I'm not related to him!
Doesn't seem like there is much out there. Anyone have any recommendations? Looking for a 75/15/10 piggyback, prefer 30yr on the first or at least 10/1 or 5/5 arm.
Yes, I can really see that, having read this thread.. :) https://www.youtube.com/watch?v=c412hqucHKw
No. I saw him recently on a field trip by the big park adjacent to Southern Blvd in the Bx. He was getting ready to go out to San Diego for the winter.
Was this the last we heard from w67th?
Do you know which banks may facilitate this, if any? From what I've learned so far, Citi yes possibly; WF and HSBC no (at least based on the individuals I've spoken to).
It seems to me that additional fees would need to be several multiples of the standard R/E attorney fee in order to destroy the economics. For ex, a 1mm mortgage transfer yields a 19k savings. Typical R/E attorney fee in the 2-3k range, so would the CEMA cost multiples of that?
As far as extra time required, that's also something I'd like to hear about, if anyone has gone through the process. Whether or not it's a deal-breaker depends on how much time it actually is, and if either party is in a rush.
Fees and time may eat up any savings, particularly if the lenders are separate institutions (this is why they're mostly done for refis. I don't know if it also affects the ability of the second lender to later securitize or otherwise assign the loan (so they will be reluctant to limit their later options).
Has anyone done a purchase CEMA on a condo resale? From what I've heard, it seems most CEMAs done are for refi's and once in a while for new construction, but rarely are used in resales. Given how much prices have appreciated in the last few years, anyone who is selling a property they bought in the last 5y probably still has a good chunk of principal left on their loan. Shouldn't buyers more aggressively be trying to assign the balance?
Does anyone know which lenders are willing to facilitate a purchase CEMA?
Rates can vary significantly ( /- 100 bps). I would call a mortgage broker (e.g. Guaranteed Rate), your bank, all the national banks (Wells Fargo, Bank of America, Citibank, and Chase) and the preferred lender to get quotes. Make sure you tell the banks the address to make sure they will finance the building and compare apples to apples, i.e., no points, same amortization term, etc.
I can recommend Phil Figler at Manhattan Mortgage.
Mortgage borrowers can be individuals mortgaging their home or they can be businesses mortgaging commercial property (for example, their own business premises, residential property let to tenants or an investment portfolio). The lender will typically be a financial institution, such as a bank, credit union or building society.
Homes for Sale New York
I used Monte Friedman as my mortgage broker. I would definitely contact him at firstname.lastname@example.org
New mortgage rules irrelevant.
Makes almost no difference on that mortgage amount
An origination charge is a fee not considered points. Usually the fee is less than$1000.00 no matter what the loan amount is.
I remember on my first mortgage I ever took I also happened to have had a windfall year and so bought points for the tax advantage. Aside from the calculators and finding the break even point, that's the only circumstance where I see them useful.
Mortgage interest is tax-deductible. Discount points are really just prepaid interest, so they're tax-deductible too. So the question is really, given your particular tax situation, do you want the deductions to be more concentrated in one year, or more spread out?
Bear that in mind when you run the calculators, which are usually pretty simple, and will only tell you whether you're staying in a place long enough to even consider buying your rate down.
And as flutistic mentions, there are also non-tax-deductible points (origination points) which usually aren't a good deal, so make sure you're not being offered those.
If you're planning on selling in five years, do the math and find out your break even point.
Ellen Silverman, Mortgage Broker
We are able to use the new value in certain cases that there is clearly evident increases in value. This was the case on 150 Charles Street, since the contract prices were at $2200 per foot and they are now approaching $4000.
Assistant Vice President
NMLS ID: 614743
340 Madison Avenue
22nd Floor/ 22B103
New York, NY 10173
This was news over four years ago. I don't remember the names of the developments. But I do remember that Chase was mentioned as a bank that canceled some commitments. I remember an article spoke to the issue of suing since people lost their 10% deposits. This was big news then. But there are other instances of a bank canceling a commitment. A few years ago I did a refinance for a woman who went to contract to buy in a building across from where I live in BPC. She had a commitment from a major bank. A day before she was supposed to close on the apt. the bank cancelled the loan. The building was un warrantable, but apparently this was an oversight of the underwriters and the woman had to come up with 650K the next day or forfeit her deposit.
Right now I would not consider putting a 10% down payment to buy in a new development that won't close for years.
Lending is still tight. I do not believe the economy is doing well. Janet Yellen just may raise rates next month which in my opinion would be a mistake.
which banks ?
Ellen, which new developments?
After the financial crisis a few banks canceled their loan commitments for some new developments. The buyers lost their 10 percent deposit.
E. S. Funding Co.
Chase can do 20% downpayment for US investors, not sure about foreign investors.
CC - what country are you from? Is best to match a foreign bank in NY to that country eg TD for canadians.
Can't you find a lender who'll lend at 25% or less ?
cc, feel free to contact me.
E. S. Funding Co.
Citizens Bank will finance HDFC.
I think Sterling National Bank may.
Any one know banks that lend for apartment purchases in an HDFC coops.
Some banks don't have a minimum requirement for occupancy, some require occupying the premises for a year. The key thing is intent. If there is a minimum requirement it should be in the loan documents.
As far as I know, banks generally require you occupy your primary residence at least one to two years after loan closing. But my bank told me they don't have minim occupancy requirement. I really doubt about it. Am I wrong?
I'm not an attorney so don't construe this as legal advice, but you probably granted the right as part of your loan application. Also, you might find this article interesting:
Banks do this All The Time. What's more, you should get that puppy terminated (figure of speech, not a literal puppy) if you don't do the deal.
Hi Everyone. Anyone know what code gives the bank the right to pre-file a UCC-1 for a mortgage refinance for an NYC coop? I'm trying to identify the specific legal code. Or even links to specific articles and websites that point to a specific legal code. Any help is appreciated!
One of my friend do help you but I have to tell him before. Lets see what I can do for you. If having some other problem them you can consult MW Florida Law for some legal help. They not only help you in lending and finance but also in all problems related to real estate and businesses. You can also visit their website at http://www.mwfloridalaw.com/foreign-real-estate-investment/.
I may be able to.
Feel free to contact me.
E. S. Funding Co.
Licensed Mortgage Broket since 1990
Want to do a 65/35 cash out refi on a non-warrantable investment condo. Will anyone do this? Thanks for any answers.
1. you might not be able to find a lender because your apt is not habitable
2. and wont qualify for a C of O
Make sure yr lawyer draws it up so its not a tenant landlord relationship. Also , heavy heavy penalties if he goes past designated date. Danger is he doesnt leave drags it out
I lived in a condo that required leases no shorter than 1 year. The only exception was a "lease" (formal document) of less than 30 days for an owner who had just sold their apartment. The Board's rationale was that sometimes it's difficult to coordinate closings, so they were allowing a "grace period" through a "lease" of less than a month. However, you had to provide supporting documentation justifying the stay before they gave their approval.
I would think the co-op would not want a tenant in the apartment without a lease which will be the case after thirty days. That said, I still wouldn't do it
I am a mortgage broker and would say that you shouldn't have a problem getting an owner occupied mortgage. I can also get you a pre approval which is a special kind of pre approval that is really like a commitment, but is not called that because. You don't have a signed contract of sale. However paperwork is required and when you go to contract. youwill have already been through the mortgage process, therefore you will be approved immediately.
Licensed Mortgage Broker since 1990
They're rare, but I know of one that just permitted a 30 day lease back. The real risk is to the buyer -- you can't get the tenant out after the time is up.
I may have a lender that will do it. However the LTV can be no more than about 60%
Mortgage Broker since 1990
bought an apt in a co-op building a year ago. Now I'm interested in buying another apt in the same building. The seller will only sell me if I rent it back to him for a year . I'm looking for a lender that does portfolio loans. Someone that is will to finance a co-op as an investment. Any ideas ?
My several foreign buyers had good experience with HSBC Premier mortgage (which offered different programs with 30% to 40% down payment) and with East West Bank (only ARM & 40% down). Those loans are not easy to get but they do exist - they required a lot of my time and attention. I had to follow up with mortgage bankers, underwriters & processors on client's behalf almost daily, making sure they get everything they ask for on time and that the things are moving along. They purchased investment properties and I rented them out shortly after closing. Now these clients are looking for their next investment. Happy to refer you to my mortgage contacts and to assist, if you are looking for a diligent and persistent RE broker. Elena Ravich 646.593.7207
GuardHill Financial Corp. is a mortgage banker and brokerage company, catering to the specific needs ofmany different types of borrowers. We provide our clients with the most competitive mortgage programs inthe market with rates equal to or less than rates they would otherwise obtain independently.
GuardHill Financial Corp. is second to none in the foreign borrower lending market. We have fantasticprograms to help foreign nationals purchase or refinance homes here in the United States.
Here are some highlights:
• Fixed and adjustable rate mortgage loans for co-op’s, condo’s, and single family
• Up to 60% financing
• Can close in LLC, Trust, Sub S Corp or Corporation as long as it’s a US entity
• Must supply two years and year to date income from their country
• Clients must show International credit if you can get it, if not 4 vendor reference letters with a good 12 month pay history and in good standing.
• Must show assets in an internationally recognized financial institution
Sohoman - Just confirming Adam statement above.
One of my colleagues notified me to the recent activity on this thread. To confirm I am not Brookman. I do post semi-regularly on brownstoner.com if anyone cares to check on the validity of my statement. I have been quoted in the NY Times and I can be found on the internet via google search. I don't post that often on SE but have in the past on a few occasions.
Mortgage Master acted as a direct lender on his transaction. We sold the loan to one of our investors (institutional banks) post closing. I was not a broker on the loan.
The program guidelines allowed for 60% LTV, I had gotten an exception on his loan for 61.31 LTV due to an appraisal coming in slightly lower than expected. The property was a condo owned free and clear in Dumbo. This was an all cash out without a required relationship. 420k loan amount. No credit score reported on the US credit report. 5/1 ARM and the rate at the time of closing was 5.25%
Mortgage Master Inc
adahill AT mortgagemaster.com
By the time these bank appraiser "experts" finish their appraisal the market has already passed them by. That's why Cash is King. You don't have some underwriter getting in the way and potentially killing a deal. Sellers love cash so if u have it use it and forget the bank. Cheers!
Appraisals can be questioned by the lender or broker .
We had this happen recently. It was called a "field appraisal" by Chase. The underwriter was not satisfied wit the original appraisal, there were a few errors on it. The 2nd appraisal came in a little ,lower and we had to renegotiate the deal. Quite frankly the apartment should have appraised higher from the start, both appraisers missed certain elements. The big factor was the high floor view North and East which included the Empire State Building. This was a prime West Village co-op. It turned into a small nightmare, however the buyer wound up benefiting.
There can be a number of reasons for a lender requesting a second appraisal. You're not being charged so sit tight and you'll get your loan. These days lenders are very cautious and with good reason; they now are being held accountable.
E. S. Funding Co.
Mortgage Broker since 1990, NMLS # 60631
Yes, on large mortgage loans it is relatively common for a bank to require 2 appraisals.
Digs Realty Group
Fannie Mae and Freddie loans with 3% down are for loan amounts below $625,500, it may even be $417,000. If you're buying a $1.2M apt, , there's no 3% down.
I was making the assumption that '7k' rent was 7k per year, not per month (i.e., paying about 580/month, which seems low, but not unheard of [roommates, miniscule studio, etc.). You probably could keep monthly costs on a purchase to around 7k/mo, but why not move to a cheaper place, continue to rent for a bit, and build up some assets first?
Not to criticize but if you have only 150k in assets it doesn't sound very prudent to rent a 7k apartment in the first place.. I'd say a 1.2mm 1br condo would be similar to a 4k-rent 1br in terms of quality. So why not just rent the 4k 1-br for now and save 3k a month in rent? That's 36k a year, and almost a quarter of your assets
Thank you Aaron for your insight!
It all depends on whether you think the investment in real estate less your expenses is going to outperform other asset classes where you could put your money. You're only 'throwing away' rent if you have the option to live somewhere with no expense -- it isn't practical to be 'short' physical housing. If you think that NYC real estate (and specifically the condo you buy) will outperform other investments, then it's a viable investment vehicle. (for a definition of 'outperform' that takes into account your personal tax rates, the marginal increase in costs over a baseline rent, renovation investments, ongoing maintenance expenses, utility value received from living in your investment, and an estimated holding period for the investment).
Without knowing anything other than what you said, if you only have 150k in assets (total, not just what you could put down), it's not clear that your first priority should be in something as illiquid as real estate.