Unconditional Finance’s Post

Some great insights Joel Cross 👏👏 Any brokers out there who aren't already using this product or recommending it to clients, definitely check out the article below 👇 There's some fantastic potential savings up for grabs if your client meets the right criteria. #GreenHomeLoan

With a GreenLiving mortgage, you can roll energy-efficient upgrades into your loan, helping you save on utilities and boost your home’s value.

With a GreenLiving mortgage, you can roll energy-efficient upgrades into your loan, helping you save on utilities and boost your home’s value.

With a GreenLiving mortgage, you can roll energy-efficient upgrades into your loan, helping you save on utilities and boost your home’s value.

With a GreenLiving mortgage, you can roll energy-efficient upgrades into your loan, helping you save on utilities and boost your home’s value.

With a GreenLiving mortgage, you can roll energy-efficient upgrades into your loan, helping you save on utilities and boost your home’s value.

In an industry full of twists and turns, one thing it seems certain we can count on is that there's going to be a lot of new home construction in America these next 3-4 years. Unsurprisingly, homebuilder stocks have soared the last six months. The ten biggest public homebuilders in America have all seen their stock price rise between 28-47% from May 14 to Nov 14 of this year. One of the things I'm helping my lender clients assess at Onward & Upward Consulting is how to take advantage of what is going to be record levels of construction to permanent financing these next 3-4 years. The most viable construction lending product is a fixed-rate one-time close construction to permanent (CP2) loan. A vast majority of people building new homes think they're going to be in them forever. And inherently people don't want to have to deal with an ARM loan that could begin adjusting upward in 3, 5, or 7 years. The dilemma with one time close C2P loans is that they present interest rate risk to depositories, as the rate is fixed throughout and you won't have a fully amortizing loan for until 6-9 months after the loan closes and disbursements begin. And the verifications of all the things the GSE's need will expire over that time. Even if you re-verify when the home is close to being complete, you still have that interest rate risk problem. Hedging fixed rate interest rate risk for 8-11 months (hedge starts at time of rate lock) is insanely expensive. And the accounting rules mandate that you have to classify loans at origination as held for sale or held for investment, so you can't cherry pick. Next most viable (to borrowers) is a two-close C2P where you have one rate during construction and then a second close when construction is complete, where you reverify, adjust the rate to current market, and then you can sell it to the GSE's. But it's still wrought with risks to the lender. If rates drop significantly during construction, even with conversion options, its often beneficial for customers to walk away from the second close. What if their credit deteriorates during the time the home is being built? What if the 6 month build turns into an 11 month build because of weather or other issues? What if investor guidelines change during that time? I could go on, there's other issues. The last lender I ran residential for my last project there before leaving to go to The Mortgage Collaborative was transforming our bustling C2P program from a one-close to a two-close program so we could begins selling them flow. All other options are very imperfect. There's never been a consistently good mainstream secondary market product for C2P due to all the challenges laid out above. It will be interesting to see how things develop in this arena as we begin to understand the powerful incentives that will (FINALLY) be afforded to builders in the coming months.

Another interesting week in Canadian real estate... Canada Mortgage and Housing Corporation (CMHC) Société canadienne d'hypothèques et de logement(SCHL) has provided an update to Lenders regarding significant changes to the MLI (Mortgage Loan Insurance) program. REFIANCE CRITERIA - effective June 4th Reintroducing some flexibility with refinance proceeds. This should open up some previously available creative financing solutions when acquiring or improving assets with non-insured debt. CLASSIFICATION OF PRODUCTS - effective June 4th CMHC will now allow for more flexibility when a new construction project is built on a site that was previously a residential structure. We hope to see less punitive results when existing rental stock is removed to make room for new, more efficient and affordable units. MLI SELECT SCORING / ENERGY EFFICIENCY - effective June 19th Applications can no longer achieve 100 points on energy efficiency alone and must have a combination of affordability or accessibility to get to 100 points. This will challenge more than just the expensive markets. Canada will experience a further slowing in rental starts, in an already desperate housing market, as many will need new strategies to deliver products that are still feasible to build. Counter intuitive to the need for creating more energy efficiency buildings to hit the Government's environmental goals which are at the forefront of every conversation. Level 1 = 20 points (down from 30 points) Level 2 = 35 points (down from 50 points) Level 3 = 50 points (down from 100 points) AMORTIZATIONS - effective June 19th New construction market projects can now qualify for up to 50-year amortization, up from 40 years. It will be interesting to see how groups react to this new availability and instead elect for market housing versus the often required MLI Select product to "make projects work." LENDER CORRESPONDENTS - effective September 3rd CMHC is changing the approved correspondent program with only approved lenders being able to submit applications directly to CMHC. This will come with its own challenges; however, our debt team at the Cushman & Wakefield National Capital Markets Group is well-positioned and has been actively working on new strategies to deliver results for our clients when working with our Lender partners. Suffice to say, this morning's news will have many ramifications and the need for creative financing solutions has never been more important. Our team is here to help with any questions or concerns you may have moving forward, Please do not hesitate to reach out Scott MacPherson | Keaton Wolansky | Marc Rosso | Brad Newman-Bennett | Kyle Grundy | Jesse R. | Amir Nourbakhsh | Matthew Rakhit Hendrik Zessel | Nonie Marler

2024 should not be a measure of how close we are to the horizon. #Election years disguise what's really happening displacing the problems to subsequent periods. There's no surprise with what's on the horizon in reviewing debt maturity reports. Not that substantiation is needed, but our Co-Manager, Brad Rymer, MBA has transacted with TPG in a large capital event. He undoubtedly knows their analytical prowess and supports the subjectivity claim in their 10k and further notes that the move was most likely scenario specific. Brad has spoken to numerous #privateequity firms, #regionalbanks and #communitybanks regarding discounted opportunities over the past 12 months. Many of those groups have already been working through troubled balances secured by #Office and #Retail. Brad believes we're in this for 2-3 years and probably more. 😣 Our focus is on #mobilehomepark investments. Since it is rare that this asset type ever struggles, unless mismanaged, our discounted purchases in agreement status will benefit our returns that much more. 👏 See our Investment Overview: https://lnkd.in/e3bH5q6B CRE Analyst Multi-Housing News #RealEstateInvestment #ResilientInvestments #mhp #mobilehome #realestate #commercialrealestate #mobilehomepark #MHC #commercialrealestateinvestor #MobileHomeParks #privateequity #privatewealth #familyoffice #accreditedinvestor #investment #investmentopportunities #affordablehousing #realestateinvestment 

Home renovations: A guide to home improvement loans