Miami, FL (PRWEB) October 26, 2012
Many people are pleased with the U.S. Census Bureau’s report of a 15% increase in new housing starts from August to September. This group of contented people includes hard money mortgage lender Jeff Karr of Quick Action Mortgage. Jeff Karr has been in the mortgage industry since 1988, so he knows first hand that when the housing market is doing well, businesses are also doing well. In a recent interview, Jeff Karr answered questions about how the improvement in the housing industry may positively relate to the hard money lending industry. For more information on Jeff Karr, Click Here for his website.
This is what Jeff Karr had to say about the recent 15% increase in new housing starts:
“The U.S. housing market is getting back on the right track. That is great news for builders, buyers, and hard money mortgage equity lenders. Building new homes is critical in any real estate market and hard money mortgage equity loans will help people with poor credit. These loans will also help increase the much needed sales that the builders need to sell their properties. So, as you can see, hard money equity or mortgage equity loans are an important piece in the recovery of America’s housing market. These loans will increase builder’s inventory and increase property ownership for people with poor credit.”
Since housing inventory is on the rise, it is vitally important that buyers are able to meet this increase in available houses. With recent changes in lending guidelines after 2008, buyers are looking for alternatives to the traditional bank loan:
“U.S. Federal Banks are so difficult with their underwriting qualifications. Many people will not qualify for a mortgage loan because their credit is not up to par with the bank’s strict guidelines, and subsequently they will lose a chance to buy a house during the housing recovery. This is where a hard money mortgage equity loan comes into play.” Jeff explains.
Builders putting their money into investment properties is a large part of the recovery. As young couples may not be able to afford a new home, they are able to get out of their parent’s extra room and get into an apartment. Savvy real estate investors are taking advantage of this and building apartment and duplex structures faster than ever. Jeff Karr explains the difference in qualifications between a hard money loan for investment versus homestead purposes.
“With a hard money mortgage loan, if you are purchasing an investment property, all you need is equity and 45% - 50% cash down to qualify, regardless of your credit. If you are purchasing or refinancing a property where you will live, you still need to show the ability to pay back your loan with annual income. However, you can still qualify with bad credit. The bank’s guidelines may get even more strict in time so we are fortunate that these types of loans are available for buyers and builders.’’
Overall, these recent numbers show very positive movement in the U.S. economy, and at the perfect time as presidential campaigning is in full swing. While this is a very positive sign, only time will tell if this upward trend is consistent.
About Jeff Karr, Quick Action Mortgage:
Jeff Karr is the owner and president of Quick Action Mortgage, a licensed Miami hard money mortgage business serving Miami, Broward County, Dade, Palm Beach, Port St. Lucie, and the Florida Keys. They can be contacted directly at (305) 232-7817 or visit http://www.fkmortgage.com/ .
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