Taos Real Estate

A couple of days ago, the New York Times ran an article here about vacation home mortgages.  The bullet points if you don't want to read it all tell us that:

• They're still difficult to get, but easing a bit from last year
• Jumbos are not getting much easier
• Higher down payments, with 10% not cutting it much anymore, more likely 20% to 35%
• Condos are harder, and a 30%+ rate of rentals in the project may stop a mortgage application in its track

"Lenders now appear more willing to finance second homes, but borrowers must be patient, eminently qualified and strategic about their housing choices"

That last one, a direct quote, bears comment.  Appraisals have become more conservative, and the buyer really needs up-to-date comparative market analysis reports that don't just look at past sales.  First, there aren't that many.  Second, looking at the competition in the market helps a buyer to craft a better offer and end up with a better deal.  If a buyer's broker is doing their job, the market analysis will cover both recent sales and competitive listings, and I've even been known to submit this report as an exhibit with a purchase offer.  It can help the listing broker to be real with the seller about the value of their property in today's market.

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