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Charlotte NC|On the Mortgage Front, There is Money To Lend In Charlotte NC!

November 13th, 2008 Listed Under: Mortgage Loans

Mortgage Money To Lend in Charlotte, The Bailout and Charlotte Real Estate News

Charlotte NC   There is mortgage money to lend in Charlotte and no you don’t have to have credit from God to qualify. It is true thatmoney signs “no money down” loans are a thing of the past. And some of the qualifications have stiffened. You will need FICO scores above 600 (about 90% of us) but there is money to lend!

There is an active and competitive market for your business as first time home buyers and move up buyers below the conforming loan limits of $417K. That means a loan amount of $417,000 so you could purchase a $460,000, with a 10% DP, giving a loan amount of $414K. Or, with 20% down, $520,000 home price. For FHA loans, with 3% down, you can at this time get loan amounts up to $303K. Our best VA source provides loans to 417K. You will need FICO scores above 600 to qualify, but that is 90% of us. Bank of America is even offering FREE Buyer Protection, if you are laid off or become disabled in the first year of the mortgage.

However there remains a liquidity problem in jumbo loans according to senior bank officials I’ve spoken with. The Jumbo loan market has no secondary market, which means no liquidity for a lender, so there are still a few Jumbos out there if you need one, but they grow more expensive by the day.

Investors- 20% Down is now the minimum, the PMI, mortgage insurance folks, won’t issue PMI any more for investors.

2nd Home- Vacation Homes 10% Down is still available.

First Time Home Buyer’s may Earn up to a $7500 federal tax credit for purchase of new homes between April of 2008 and June 30 of next year. This credit will be recaptured over 15 years so amounts to an interest free loan to the borrower-first time homeowner. I wrote about this in detail here.

TARP- Troubled Assets Relief Program , otherwise known as the Bailout

It’s been two months since Secretary Paulson asked Congress for the $700B bailout, then it passed in a week we won’t soon forget, now Secretary of the Treasury Paulson announced today that of the $250Billion disbursed, none was used to buy up bad loans, the purported purpose of the bailout. WHAAAAT? (Can anyone say “Missing WMD?) Apparently the problem was much worse than thought, and most of this money has been kept in companies, to keep them solvent and alive. That makes me feel better. Help has been extended to American Express, but not so far to GM, which is not a financial company according to Paulson.

His work has the transparency of mud, he still speaks of “systemic problems” and my confidence level is not rising. President-Elect Obama – please announce your Treasury team today.

Charlotte Real Estate

Big headline from the Observer- Sales down 31% last month. (PLAY LOUD SCARY MUSIC) Further down you’ll see that median prices went down not quite 1%- essentially flat. And these averages are hiding key numbers as certain neighborhoods have risen in price. I’ve written about a few recently, all with rising home prices, have a look at Birkdale, Southpark, and Myers Park.

Once again I need to mention to Stella (Stella Hopkins- Observer Reporter) and her editors- the story here is the strength of our Home PRICES. No doubt there is a headline about sales being down- um, Stella that means the market is slow, and very bad for the New Home industry, and you’ve written about it extensively and well. But there is another story you seem determined to ignore. The news that despite what’s happening around the nation to home values- what has caused a crisis in housing, and now in our credit markets–that crisis has NOT, thankfully, not taking place in most of Charlotte. Not in Austin Texas either, not so much in Atlanta, or Seattle. Why do we have in common with these cities, and why have our prices held up? This is a good front page story… and here are a few hints.


Moving to Charlotte?  Your first Charlotte home?

Have a home buying or home selling questions? I am a Charlotte real estate broker specializing in relocations, 2nd homes–buying and selling real estate of all kinds- and will represent only you.  We work with Buyers and Sellers every day in Myers Park, Southpark, Matthews and Huntersville, Lake Norman, Waxhaw and Lake Wylie too. My team and I know the homes, the communities, and the new home builders. We know what’s hot, what’s not and where the deals are.  I think as you read my posts you’ll see that we understand home buyer needs, from a first time home owner to a luxury home purchaser.

If you still haven’t figured out where you might want to live in Charlotte, you may compare area Charlotte home prices and communities,  from our MLS based home search below. If you haven’t already, try my  my fact-filled and well received Introduction to Charlotte NC Video (over 9000 You Tube views) and don’t miss the FAQ videos-answering the Big Question- Where to live in Charlote, or where to look for a luxury home in Charlotte? (in the right column just under the Introduction to Charlotte Video Screen)

If it’s between the hours of 8 AM to 8 PM, EDT, please don’ t hesitate to call me direct at 704-351-1519. Terry

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Terry McDonald
I'm the owner/team leader of The McDonald Group at Wilkinson and Associates ERA Powered real estate brokers here in Charlotte NC. A transplanted Washinghtonian, my family and I came from the NYC area in 1993.
Terry McDonald
Terry McDonald

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Terry McDonald [email protected]   704-351-1519

Bobby McDonald [email protected] 704-351-1519