The Mortgage Man

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Archive for Condos

Perdido Key Condo Deals – LaRiva

LaRiva is a rent restricted building with some of the finest ammenities on the Key.  Call about financing and get pre-approved before this one gets away.

Steve Russell



Reverse Mortgage Alternatives

Even if you do not qualify for a reverse mortgage, there are other options.

A Reverse Mortgage can be a useful tool in helping seniors to maintain their independence and stay in their homes as long as possible after retirement.  But, a reverse mortgage is not without limitations.  People with a high value home may be shocked at how little they can qualify for in a reverse mortgage because of the loan limits with FHA.

To fill this void in the market, a relatively new product called equity sharing has been designed to help those that don’t qualify for a reverse mortgage.  Even if you do qualify for a reverse mortgage, equity sharing can be an alternative that is not a mortgage and does not accrue interest.

With equity sharing, the property owner (age 65 to 85) agrees to share the future appreciation of the property with the financial institution in exchange for cash today.  The home owner is allowed to keep 100% of the equity based on current appraised value.  Then, going forward, the home owner will split the appreciation 50/50 with the financial institution.  As compared to a reverse mortgage, equity sharing does not have an interest rate accruing, it is not recorded as a mortgage on the property, and it can be used on properties other than the owner’s primary residence.

Example 1:

A home owner in California has a primary residence that is worth $1.2 million with a current mortgage balance of $500,000.  Because the maximum allowable reverse mortgage is $417,000, this home owner would not qualify.  But, with equity sharing, he could get up to $180,000 in cash (15% of the current appraised value) without a loan or a monthly payment, and without the need to payoff the current mortgage balance (assuming the current mortgage is not a reverse mortgage or a negative amortization loan).

Example 2:

A home owner in Tennessee has a beach house in Florida.  He wants to get a reverse mortgage on the beach house, but doesn’t qualify because it is not his primary residence.  The house is worth $750,000 with a current mortgage balance of $300,000.  He would qualify for $112,500 in exchange for a 50% stake in future appreciation.  Ten years from now the home owner sells the house for $1.2 million.  The difference in equity is $450,000 since agreement was made.  The equity partner takes $225,000 (half of the appreciation) plus an 8% surcharge to cover transfer costs and Realtor fees, leaving the owner with net proceeds of $879,000, plus the $112,500 already received at the time of the agreement.

While it does create opportunities, equity sharing is not without its disadvantages.  Depending on how rapidly you think the home will appreciate, the costs could significantly outweigh the costs of a reverse mortgage or other interest bearing alternative.  That being said, it is one of the more realistic alternatives to reverse mortgages available today.

If you would like to find out more about a reverse mortgage or an equity sharing program, send me an e-mail at with your name, phone number, date of birth, state where the porperty is located, and the value and mortgage balance on the property.  Or, call me toll free at 888-257-8383 for a free consultation.

Pensacola Mortgage

Buy A Home For The Price Of A Used Car?

While many home owners suffer across the country, the current market is creating unprecedented buying opportunities.

It is no secret that every story has two sides.  You are pummeled in the media on a daily basis with the stories of doom and gloom about today’s housing market, and its affect on home owners nationwide.  What you may not have heard about is the flip side of the coin which is the buying opportunities that are being created.

Throughout the last century, more millionaires have been created through real estate than all other business combined, and right now there is a clearance sale going on that could change your financial future.  That may sound a little sales pitchy, but it is true.  Those who position themselves correctly today will be poised for financial independence tomorrow.  Those who listen to the mainstream media can sit back 2 years from now and talk about what they could have done but didn’t.

As reported on Good Morning America this morning, in Detroit, Michigan there are currently 1745 homes on the market for less than $10,000.  That’s not a misprint.  When you can buy a home for less than you would spend on a decent used car, there is a tremendous opportunity to create wealth and income.  It is not just Detroit though, there are amazing buying opportunities all over the country right now, and if you are even considering buying a home, now may be the time.

Here are some free resources where you can find distressed properties nationwide.  (some are free trials, but still worth visiting) (click on Investors) (this one is general property listings, but they have an extensive database nationwide) (over 600,000 active foreclosure listings nationwide) (free foreclosure search nationwide)

Perdido Key Condo Deals – Purple Parrot

Purple Parrot Village Resort in Perdido Key gives you the feeling you have just stepped onto a carribean island.  With its unique cottage style bungalos and huge lagoon style pool, it is hard to believe that you can get a piece of this paradise for little more than $100,000.

Lagoon style pool at Purple Parrot

With the rise in foreclosure rates, and a sluggish economy, vacation properties such as Purple Parrot have had challenges recently.  The good news is that because of this, a unique buyers opportunity has been created where you can own one of these island living gems for half of what they were selling for just 3 years ago.

Tropical cottage at Purple Parrot

You can find several of them listed as preforeclosure short sales at  If you are in the market for an investment property within walking distance to the beach, this is possibly the best deal available on the key right now.

For a local real estate professional specializing in beach properties on Perdido Key, go to

Perdido Key Condo Deals – Laplaya

Now is the time to get a steal on waterfront property.

Laplaya street view

Laplaya on Perdido Key is a beautiful 13 story condo located directly on the beach on Perdido Key, and there are units priced as low as $283 / square foot.  For those of you in different parts of the country, this may sound like a lot, but I assure you it is not.  To be under $300 / square foot is quite impressive for a luxury waterfront condo, and this is yet another example of the deals that can be had today as the result of a foreclosure.

One of the more distinguishing characteristics of Laplaya is the huge wrap around balcony.  It is hard to tell from the picture above, but the end unit balconies are some of the largest of any building in the area.  Laplaya with it’s sweeping views of the Gulf and first class amenities is a must see for any condo investor.

For a local real estate professional specializing in beach properties on Perdido Key, go to

Pensacola Real Estate Is Making A Comeback!

New housing report shows the best quarter of the last 5 consecutive.

The post below is cut and pasted from a report that I received from Emerald Coast Appraisal Services.  I have been saying for a while that the market appears to be picking up, and here is the proof of it.  Not only did housing sales increase, but of the 19 metropolitan markets studied in Florida, Pensacola came up with the largest increase.  A special thanks to Roger Kinnard for making this information available.

Emerald Coast Appraisal Services

409 S. Navy Blvd.

Pensacola, Florida 32507

Phone: 850-455-3333 Fax: 850-456-0192


The State of the Pensacola Housing Market – 06/2008

(Roger Kinnard, St. Cert. Res. REA #2782, RAA)

As spring transitions into summer, our real estate market appears to be gaining some momentum and the traditional sales season is underway. Many indicators of activity are up and the message that this is a buyers market and a good time to buy appears to be sinking in. While all of the positives are tempered by the remaining overabundance of active listings and declining values in many segments of the market, they are undeniable.

The Office of Federal Housing Enterprise Oversight issues a housing price index every quarter that measures housing price trends in numerous metropolitan statistical areas throughout the country. The Pensacola market has posted 5 negative quarters in a row, until now. The latest housing price index shows Pensacola gaining .76% in the first quarter of 2008. While less than 1% many not sound impressive, it is the highest number posted by any market in the state of Florida. Out of 19 markets studied in Florida only 3 posted a positive number and Pensacola had the highest increase.

The latest statistics issued by our own Pensacola Association of Realtors show that the median price for May 2008 ($170,900) is higher than the median price for May 2007 ($170,500). While the volume of sales continues to lag behind last year by around 24%, the number of sales has increased every month since January. Supply has remained stable at around 6,400-6,500 units for sale throughout the year to date.

The significance of these signs of stabilization is twofold. Not only are they positive indicators for the future of this market, but they could also affect the number of potential buyers who can qualify for loans. On the basis of previous OFHEO reports, association of Realtors information, and other sources of data, FNMA and many individual lenders have designated the Pensacola market to be a declining market. A loan originated in a designated declining market has different underwriting and qualifying standards. While FNMA has recently announced changes to their policy of requiring higher down payments in declining markets, many lenders remain tentative about making loans in declining markets. If these positive indicators hold true, it is possible that Pensacola may be taken off the list of declining markets.

As mentioned previously, FNMA has recently (starting 06/01/2008) made changes to their loan-to-value policies. A mortgage originated through desktop underwriting can qualify for up to a 97% loan, even in areas that are designated as declining markets. This will allow borrowers who need these types of loans to have another option, besides FHA.

With these positive indications, the first we have seen in a long time and the possibility of more open, available financing, the prospects for the market are much brighter than they were just a few months ago.

Our market remains segmented. Some areas are showing signs of stability, while some areas remain in decline. Even varying price ranges within a specific area are performing differently.

The following charts and tables show how different two segments of the same market can be. While Z2Y1 and Z7Y2 are only separated by 3 or 4 miles, the difference in performance between the two areas over the past year is notable.

Perdido Key Condo Deals – Windemere

Windemere Beachfront Condo for $288 / square foot.

Gulf View from the balcony of Windemere

There are some amazing deals on beach front real estate on Perdido Key, and here is an example of one that is currently listed.  At $329,000, this 1176 s.f. unit in Windemere (directly on the gulf on Perdido Key) is one of the lowest price per square foot units available on the market.

Located in a building built in 2004, this unit has 2 bedrooms, 2 full baths and a very spacious balcony that is so close to the water that you can smell the salt in the air.

For questions about financing availability, or to get more information on other deals available on Perdido Key, Contact Me directly and I will be happy to help.