@wa3more wrote:your post brings up the variances in local real estate. I live in long island NY. Most areas are tight and forget NYC or hot areas of brooklyn. Some here with 800 fico and 20% + down can't get financing.
Many are leaving long island to go to the carolinas - get good value like in kansas but great quality of life. I'm out of here as soon as kids go. My son is NYC police man and daughter just finished collegw so i'll be free soon....
This texas land thing i just dont know much about. Is this a big plot of land with a house on it or is there no house ? Not sure what kind of comps there are.
Strange, I assume we're talking jumbos and I would suggest they aren't talking to the right lender or don't have sufficient income.
Yeah, Kansas, North Carolina, or back to Texas were my three potentials so I can definitely see NY flight to there.
@tacpoly wrote:
@Revelate wrote:
@wa3more wrote:your post brings up the variances in local real estate. I live in long island NY. Most areas are tight and forget NYC or hot areas of brooklyn. Some here with 800 fico and 20% + down can't get financing.
Many are leaving long island to go to the carolinas - get good value like in kansas but great quality of life. I'm out of here as soon as kids go. My son is NYC police man and daughter just finished collegw so i'll be free soon....
This texas land thing i just dont know much about. Is this a big plot of land with a house on it or is there no house ? Not sure what kind of comps there are.
Strange, I assume we're talking jumbos and I would suggest they aren't talking to the right lender or don't have sufficient income.
Yeah, Kansas, North Carolina, or back to Texas were my three potentials so I can definitely see NY flight to there.
That's not it. The mortgage market in NYC, specifically Manhattan, is completely different than the rest of the country. It's mostly big banks and portfolio lenders financing $1M+ mortgages. Their requirements are much more strict: minimum 25% down, preferably more, 1 to 2 years cash reserves, and pristine credit. In addition, there are closing costs to consider: standard 2% + 1% mansion tax for any property over $1M (what decent apartment isn't) + 2% mortgage tax + condo/co-op fees, attorney fees, and other normal closing cost incidentals. If you're buying new construction, you'll have to pay developer's closing cost (i.e. 1.4% transfer taxes, attorney fees, your share to buy the live-in super's unit). So closing costs can add up to another 5-10% of the price of your apartment. So you would definitely need sufficient income and large savings to even think about buying a place in Manhattan and some parts of Brooklyn.
I guess my question is why? The blue is identical to the rest of the country: the large banks have the jumbo market cornered and portfolio lenders play there too for the simple reason holding those tend to be more profitable compared to the typical conventional or FHA where the money is made in the origination so they farm those out with warehouse lines to the various smaller mortgage shops (Wells Fargo notwithstanding). That's how the mortgage industry is setup across the country actually.
So why is Manhattan intrinsically harder than S. Cali? Chase was doing 15% down for those with pretty FICO scores (740+) with no PMI and that was 2015 and the rest of the big banks were pretty similar (some differences in DP/PMI and maybe .25% on rate, was all pretty identical actually); I haven't checked current jumbo market as I'm not shopping for a loan, but it doesn't make much rational sense that there'd be different lines based on where you live: redlining was a thing and remember, they got slapped hard for that so I suspect their policies are pretty close to nationwide.
When was your information dated?