I had the opportunity to talk to my friend and colleague, Steve Hartstein of First Meridian Mortgage, a residential Manhattan-based mortgage company, about the current climate of lending.
I asked Steve if he’s noticed any significant changes and what we can expect in 2011.
The Fourth Quarter of 2010
“Since the end of the fourth quarter of 2010, I’ve witnessed a major push by lenders to introduce new and innovative products for buyers. The rates between jumbo loans (loans over $729K) and conventional ones (below $729K) have narrowed substantially. In other words, as a consumer, what one would pay for a jumbo loan rate versus a conventional loan rate are not as dramatically different as in the past.”
Steve also noted that jumbo loans weren’t as easy to acquire, as they had been in the past and he’s seen a trend begin to develop over the past few years.
“Over the past few years, banks were trying to only originate conventional loans (those loans that are typically not retained by the banks and sold to another party) while jumbo loans were becoming more difficult to obtain for the average condo buyer in Manhattan. That translated to: A buyer either had to have a substantial down payment in order for the loan to be defined as a conventional one or the buyer acquired a jumbo loan and paid a substantially higher rate relative to the rest of the market.”
The Future of Lending--Enter 2011
Steve has noticed a new trend developing.
“I’m seeing a move from a few major lenders who want to get back into the jumbo market, especially in New York City. Incentives include waiving pre-sale requirements on new condos and lending to foreign nationals. A few of these lenders are also offering loans that require no income verification, geared toward self-employed individuals with high credit worthiness.”
We’ve worked with Steve and First Meridian for a number of years and value his expertise when it comes to providing what’s best for buyers. First Meridian Mortgage is one of the most reputable and premier mortgage lenders on the East Coast and rapidly becoming one of the largest in the country. They specialize in Manhattan properties and developments and are licensed in thirteen states.
Email Steve or call him at 212-223-0051 for more information.
Coming soon: The next installment with Steve Hartstein, The Pro’s and Con’s of FHA loans.
For more information about Keller Williams New York City visit our website.
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