This will be BIG for tomorrow… Breaking News on Expert Group: EXPU Implements New FHA Condo Lending in South Florida
Expert Group, Inc. Implements New FHA Condo Lending in South Florida
Expert Group, Inc. (Pinksheets: mEXPU) is pleased to announce the great news coming from FHA about FHA Condo loans. As we already know, South Florida is one of the largest markets for condominiums in the U.S.A. As of this week, there are a combined 49,746 condos and town houses on the resale market in the tri-county South Florida region, stretching from West Palm Beach to downtown Miami. That’s down from 51,581 about a month ago.
The approval from the Federal Housing Administration, means potential buyers can more easily qualify for a low-down-payment mortgage backed by the FHA — a highly coveted amenity in this era of tight credit.
Typically, it can take months for the FHA to approve a mortgage on a condo, Fannie Mae and Freddie Mac, the government-controlled mortgage companies, have put in place even tighter guidelines for making condo mortgages. And without government backing, private lenders that offer mortgages for condos require large down payments of 30% or more. But if a building has FHA approval, the borrower can get a mortgage in as little as two weeks. In addition, the buyer can get a down payment as low as 3.5%. (The FHA doesn’t make loans but insures lenders against losses on those loans.)
The FHA’s growing appeal among developers represents a drastic turnaround from just a few years ago, when condos sold so quickly that few developers bothered with the FHA’s time-consuming application process. These days, however, condos are the weakest segment of the housing market. Condo sales in April fell 12.5% from a year ago, compared with a 3.6% decline in sales for single-family homes, according to the National Association of Realtors.
At the end of April, the U.S. had enough condos to absorb 15 months of demand, according to the National Association of Realtors.
In order for mortgage to be eligible for backing, the FHA requires 51% of units to be sold. While Fannie and Freddie have boosted their requirement to 70%, an FHA official said the agency is open to lowering its threshold out of concern that tighter financing could push the sector into a downward spiral.
More buildings also are eligible for FHA approval after Congress last year boosted loan limits to $417,000 across the country and as high as $729,750 in the most expensive markets. About one-third of all first mortgages are now being originated through the FHA, up from about 2% in 2006. Much of that share has come in markets that were previously shut out by lower loan limits.
Condo buyers also are finding FHA loans may be more affordable, particularly for borrowers with lower credit scores or smaller down payments. In April, Fannie and Freddie began requiring condo buyers without a 25% down payment to pay closing-cost fees equal to 0.75% of their loans, regardless of the borrower’s credit score. The FHA, by contrast, doesn’t charge higher rates on borrowers who make smaller down payments.
Robert Rico states, “This is huge news for Expert Financing. South Florida is one of the biggest condo markets in the country. We now can market to this multi million dollar Market in our back yard. For the last 2 years, our business has been mainly single family and commercial. We have shied away from condos to do the heavy regulation from our lenders. We will begin immediately a marketing campaign throughout South Florida.”
About Expert Group, Inc.
Expert Group, Inc. markets a variety of financial products and services through Expert Financing & Investments, Expert Group Title Services and Expert Credit Fix U.S.A. Expert is licensed by the Department of Financial Regulations and a member of FAMB, and FHA approved Lender.
About Expert Financing:
Expert financing offers up-to-date loan programs tailored to all borrowers’ needs, specializing in Fannie Mae, Freddie Mac, FHA, conventional and non-conventional loans of all sizes. An Expert Loan Officer can help you find the best Loan for your needs, and our professional loan experts speak your language, including, Spanish, Russian, Portuguese, French, Italian, Hebrew and Creole.
About Expert Credit Fix U.S.A.
Expert Credit Fix U.S.A. is ahead of the game, assisting borrowers with less than perfect credit to fulfill their dream of home ownership. Expert Credit Fix U.S.A. will help borrowers restore their credit to a level where lenders will grant them credit and at a low interest rate.
Certain statements in this release and the attached corporate profile that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “future,” “may,” “will,” “would,” “should,” “plan,” “projected,” “intend,” and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company’s future operating results are dependent upon many factors, including but not limited to the Company’s ability to: (I) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company’s control; and (iv) other risk factors.
Contact:
Expert Group, Inc.
www.ExpertFinancing.net
www.ExpertCreditFixUSA.com
or call:
305-949-LOAN (5626)
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