A Few More Sales Trickle In at BellTel
It’s not a lot for a building with 250 units, but it’s something. A press release just went out yesterday trumpeting the fact that four units at the BellTel Lofts had sold recently; sales prices ranged from $559,000 to $900,000 and three of the four buyers took advantage of FHA loans. The building is now…
It’s not a lot for a building with 250 units, but it’s something. A press release just went out yesterday trumpeting the fact that four units at the BellTel Lofts had sold recently; sales prices ranged from $559,000 to $900,000 and three of the four buyers took advantage of FHA loans. The building is now over 55 percent sold.
Belltel Joins the FHA Club [Brownstoner]
Targeted Price Cuts at Belltel Lofts [Brownstoner]
Checking In On The BellTel Lofts [Brownstoner]
Belltel Parking On Tap [Brownstoner]
Belltel Lofts: 50% Percent Sold [Brownstoner]
The Belltel Lofts: 40 Percent Sold [Brownstoner]
unless your income falls, you are no less able to pay your mortgage in 5 years time than now whethr you pay 3.5% or 20%. The higher mortgage rates for lower downpayment reflects the risk the bank is taking regarding what it can recover if you default and the value of the house has gone down. It does not reflect what you can afford, your yearly income determines what you can afford.
What a disaster waiting to happen. Odd layouts, windowless rooms, bad light where there are windows, dumpy location and now people can only to “afford” to buy if they put 3.5% down, ensuring future foreclosures. And that’s before you factor in the eternal darkness this building will be plunged into once the Avalon Willoughby West rental tower is built across the street blocking out the southern light.
“Why would you need your income to go up Northslope? – your mortgage payment isn’t going to jump up. ”
Because if you cannot afford more than a 3.5% down payment chances are you are not really making enough money (or are not managing the money you make wisely enough) to buy the property.
Now, if someone wants to take this risk and a bank wants to let them take this risk, then — fine, whatever, I don’t care. But when the government (aka taxpayers) have to take the risk, then I care. *I* don’t really want to loan people money so they can buy property with 3.5% down.
Also, if you do some calculations on a mortgage calculator, you’ll find out that the person putting 3.5% down will pay substantially more for the property (thanks to interest charges) than the person putting 20% down — unless the person putting 3.5% down is planning to make larger mortgage payments in the future.
The primary beneficiaries of this program are (1) lending institutions and (2) sellers.
I would be interesting in seeing that FHA default analysis. Maybe the default rates are similar to not FHA loans during a bubble, but it will be an entirely different story on the way down. There is no doubt someone is more likely to default when they are underwater, and you are much more likely to be underwater with 3.5% down. There is a reason why mortgage rates go down the higher percentage your downpayment is
Agree with northsloper here, FHA is just yet another way the gov. is propping up housing price, in effect making them unaffordable to most. It is our tax dollars subsidizing homebuilders and realtors, as well as sellers who overextended themselves
^—- Only the studios on floor 2 – 9 and even on those floors there are I think 5 units per those floors with 1 & 2 bedrooms are not studios (read legal bedrooms). Floors above 9 are on the first setback and are more expensive and more light. The lamest units are 2 floor studios with a spiral staircase on I think floors 23 and 24.
I almost bought here. I still have the original sponsor offering plan with all the floorplans for every unit in the building. (It cost $300!).
I think for 9 is one of the best floors. It has I think 12′ ceilings. Others are 10’6″ and some of the 20th floor and up have 11’+ ceilings.
A lot of interior space with no light. Most layouts are long spaces with windows on one wall — the livingroom/kitchen. So all other “rooms” have no windows or ventilation.
The other thing is that most of these units are not likely to appreciate any time soon — they will always be plagued by the poor layouts.
I do not like this building. Most of the apts are very dark.
FHA loans, the new subprime.
Why would you need your income to go up Northslope? – your mortgage payment isn’t going to jump up.
Also, as recent stats show, FHA loans default rate is no higher than the average default rate for people having the same credit score.