Boston Real Estate Blog

Kendall Square, home to MIT, has long been known as the center of biotechnology and computers.  There are more Nobel Prize winners living per square foot than any other area of the world.  Kendall Square is the home to companies such as Genzyme, Microsoft and Google as well as many start-ups.

Centrally located between Harvard square and Beacon Hill Kendall Square is 5 minutes away from the best museums, restaurants, and nightlife Boston and Cambridge have to offer.

Seeing potential in Kendall Square’s location and industry developers, with the city’s encouragement, have began to build more residential projects in the area.  Two notable projects I recently visited are Third Square and The Watermark.  Both are brand new modern buildings offering luxurious finishes and amenities.  Both feature a fitness center, 24 hour concierge and lounge but  they come in very different packages.

The Watermark is a LEED Certified Green building.  All the appliances are Energy Efficient.  The paints and finishes used in the building emit dramatically fewer VOC’S (volatile organic compounds) than traditional finishes.  The carpets are free from formaldehyde, a substance used to make most carpets stain resistant.  These factors make for superior indoor air quality.  The tower boasts amazing views of Boston’s skyline and the Charles River.  From the sunny apartments one can see the sailboats and the esplanade.  At night the buildings light up the skyline.

Third Square is designed in a courtyard formation.  Two fitness centers and an indoor lap-pool overlook the sunny, beautifully landscaped courtyard.  The building’s low-rise massing, and mixed-use of retail and residential create a really strong  community.  In the summer the residents enjoy barbecuing in the shade.  The courtyard provides a little oasis from Kendall’s urban atmosphere.

If you are interested in taking a tour of these buildings or other full service listings please call or email me today.

Mortgage Market Update 

April 26, 2010

 

As the first time homebuyer deadline rapidly approaches, I wanted to keep you informed on current interest rates and a few items pointers on Flips and Deposits that may help going forward.  

 

Mortgage Rates:  Mortgage rates bounced around a tight range for most of last week, as there wasn’t much in the way of news to motivate movement in the first three days of the week. Below is a sample of some of our key rates for a 740 FICO and 80LTV borrower w/ NO points:

 

 

 

 

 

 

Program Updates:    Below is a graph which illustrates how borrowers are financing their new home purchases. “FHA IS THE WAY” has been the motto of many mortgage bankers and brokers since the collapse of the secondary mortgage market in 2007. Notice how FHA market share has grown since then and one might argue many of the first time home buyers who took advantage of the tax credit were able to because of FHA. 

Underwriting Updates:   

 

Flips - Property Flipping is a process of purchasing existing or proposed construction properties with the intention of reselling the properties for a profit. Individuals that flip properties employ a variety of different approaches to reach their objective - some briefly hold title(months or days) and others assign their interest in a contract to a third party(nominee) without ever taking title. Although these practices are legal, obtaining financing through conventional means can be problematic if:

 

·         The time the seller has title to the time of the P&S signing is less than 90 days

·         The increase in sales price is greater than 20% from their cost and significant repairs can not be substantiated

 

Although we may be able to work through some of these issues, it is always best to involve me in the process early if you suspect the property may fall into the definition of a flip.  As usual, Mortgage Insurance guidelines are significantly stricter so please pay special attention to any borrower with any preapproval with less than 20% down. 

 

 

Deposits - In most circumstances, deposit funds must be drawn from a homebuyer’s personal account. If your client’s intention is different from that, urge the homebuyer to contact the lender immediately.  You may have cause for concern under the following scenarios: 

 

• Deposit written on a credit card check
• Friend or relative writes check instead of your client
• Funds wired from an unknown source

 

Since most banks must now verify source of deposit money, deals could be delayed or even denied under the above deposit situations.

 

As always, please let me know if you have any questions or need any additional information.

 

Best, 

 

Jason Deeb
Senior Loan Officer

 

Direct:  781.486.7143
Cell:      617.901.8405

Fax:      781.245.7373
Email:   jdeeb@msamortgage.com