The clock is ticking for those home buyers who wish to finance a Bonita Springs luxury home with a jumbo mortgage. The jumbo mortgage market is going to change in 2014 and home buyers of luxury real estate in Bonita Springs will want to take action before the rules tighten up.
Right now, in Lee County Florida, the jumbo mortgage classification begins in the low to mid $400,000’s. High end home purchases, especially home purchase of luxury real estate, will be relegated to jumbo mortgages.
The new jumbo mortgage changes in 2014 will mean that luxury home buyers seeking a mortgage will be required to provide more documentation to verify assets as well as income. Low doc jumbo mortgages have been the darling of the self employed due to the challenge of proving income with personal and business tax returns.
Also being restricted will be the use of interest only jumbo mortgages.
These mortgage changes will mean a few things. There could be a burst of high end, luxury home buying in 2013 as home buyers slide in under the deadline.
In the Bonita Springs and Estero Florida area, we’ve already begun to see the higher end real estate market pick up. For example, the $400-600,000 and the $600-800,000 price points which each accounted for a marginal amount of sales each month last year, picked up for the first time in years in January 2013.
The cause of the luxury home buyers returning to the market is due to Bonita Springs real estate being undervalued, consumer confidence picking up, baby boomer retirement drawing near and of course the added benefit of Florida being “the sunshine state” in addition to being the “no state income tax” state. The affluent are purchasing luxury Florida real estate to establish residency to save big bucks on taxes.
The end result is more high end, luxury real estate closing sale, especially Bonita Beach Real Estate and real estate in gated country club communities with lifestyle amenities that are a draw for the affluent; golf equity memberships, country club and social memberships, sport and fitness clubs, tennis clubs, marina memberships and concierge services on site.
As the year progresses look for luxury home buyers, who are interested in leveraging low interest rates to finance their luxury home purchase, to jump into the real estate market especially if they believe that they may have loan documentation challenges in 2014.
If you are thinking of taking advantage of the jumbo loan mortgage program to purchase Bonita Springs luxury real estate before the rules changes, give me a call. I’d be happy to introduce you to a trusted, local mortgage banker for a confidential consultation. Chris Griffith 239-273-7430 or Contact Chris.
###
All information is deem accurate, not guaranteed and subject to change. Check the date on this report for freshness. If you have questions regarding your particular neighborhood, your street or your home specifically you’re welcome to contact us for a current market report. Real estate consumers that read this website are urged to seek independent, professional legal, real estate and financial advice before engaging in any transaction. All information is deemed, accurate, subject to change and not guaranteed.
