Real estate purchases should uptick soon due to a loosening in residential and commercial lending.
Since the beginning of the year, the appetite for real estate loans by lending institutions is increasing dramatically and without notice to the real estate buyer. Banks are back lending money in a big way. The view is that properties in Boston and surrounding areas are viewed as good investments. Recently within the last couple of weeks, one bank is now offering a no income/ no asset loan with a reasonable rate of interest in Suffolk, Norfolk, and Middlesex counties. In another case, a major lending institution is now providing financing for investment properties for the first time in over three years. This year loan to value, credit and PMI (private mortgage insurance) are turning more favorable to the real estate buyer. A glance of commercial multi-families show banks are scrambling to place money with historically low rates as the rental, interest rate, loan to value and risk/reward factors become so compelling. All in all, the foundation is being set before our eyes for Realtors that should translate into a strong Boston real estate market.
Please feel free to contact me for questions, or call Edward Voccola, ENG Lending at 617-233-5555 email edwardvoccola@gmail.com
