Leveraging Market Stats Webinar with Miami Realtors

Miami Realtors has a phenomenal webinar series that is hosted by our VP of Communications, Chris Umpierre, and a different Miami Realtors Leader every month. I had the honor of co-hosting the webinar for the third time! We went over the most recent available market statistics and dissected what was happening in our South Florida Real Estate Market. As a real estate broker who helps people buy, sell and invest in Miami real estate, it is important to marry my experience in the marketplace with the overall sales data for our specific market in order to have full understanding and context on the market in order to properly advise our clients and customers. When it comes to real estate, ignorance is NOT bliss. The more we know, the more we are able to make knowledgeable and strategic decisions in our businesses and protect our customers while transacting. I pride myself in always being a student of the industry and I encourage my fellow real estate professionals to do the same. It is how we remain knowledgeable, sharp and informative resulting in providing quality service and always being of value to our clients and customers.

If you missed the live webinar, you can watch the recording here in this blog post. Whether you are a buyer, seller, looking to invest, a real estate professional, or someone just curious as to what is happening in the South Florida real estate market, you will find massive value in this webinar. Here are some key takeaways you will receive:

  • What’s the latest on rising mortgage rates and how are they impacting the market?
  • What’s the latest on the intense demand and lack of supply?
  • What’s happening in the luxury sector?
  • What factors are fueling demand and how will they affect future market activity?
  • How does market performance vary by price point, area, and other factors?

Are you in the market to purchase a home or to sell your existing one? Let's schedule a call to discuss your specific needs.



Conventional Loan Limits have Increased!

The surge in home prices during the pandemic has fueled the biggest dollar increase in the conforming loan limit for Fannie Mae and Freddie Mac, making it the highest increase since 1970!

Conventional loan limits have increased from $548,250 to $625,000! What does this mean for homebuyers?

As a buyer, this gives you more buying power! First-time homebuyers can buy a home with a little as 3% down on a $645,000 home!

Only certain lenders are currently accepting these loan limit changes effective immediately. If you or someone you know who is looking to purchase a home has questions regarding the home buying process, please contact me asap to see how much you can qualify for towards the purchase of your new home!



FHA Updates to Student Loan Debt Calculations

Did you know that homeownership was lower for black college graduates than for white high school dropouts? 👈🏾 This little, yet disturbing fact is extremely relevant. “As our country comes together to remember Juneteenth and acknowledge National Homeownership Month, we are reminded of a basic truth: that, too often in our history, the march toward freedom has been a long, halting, and uneven journey,” said Housing and Urban Development Secretary Marcia L. Fudge.I cannot begin to explain just how pivotal this change is. So many have been denied the opportunity of homeownership due to student loan debt. Black college graduates have 46% more student loan debt on average, compared to white college graduates.

 

Lenders may implement the changes immediately but must implement the changes for FHA Case Numbers assigned on or after August 16, 2021.

So what are the changes? The policy change centers on the removal of the current requirement that FHA mortgage lenders calculate a borrower’s monthly student loan payment as 1% of their outstanding student loan balance for loans that are not fully amortizing or are not in repayment.

Prior to this change, FHA borrowers would have 1% of their student loan debt calculated against them. This meant that if someone had $50,000 in student loan debt, $500 would automatically be added as a monthly debt, severely affecting the borrower's debt-to-income (DTI) ratio. May times, it would not allow the potential buyer to qualify for enough to purchase, or the DTI would be too high and the option to purchase is removed altogether due to not qualifying. With the new changes, FHA will calculate student loans very similarly to the way conventional loans do. If the borrower is on an income-based repayment (IBR) or income-driven repayment (IDR) plan of $1/month or more, then FHA will calculate that amount. If the borrower is not on an IBR or IDR, then 0.5% of the student loan balance will be calculated towards the monthly DTI.

 

Click here to read the press release by the U.S. Department of Housing and Urban Development.

For the full mortgagee letter regarding the changes, click here.