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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (12141)	4/18/2004 4:03:02 PM
From: Jon Tara	Read Replies (1) \| Respond to of 110194

Dunno about Philadelphia. But I will find out for sure about San Diego tomorrow. I know somebody who just bought in a new development, with developer financing, and he looked around quite a bit first. I am sure he is familiar with the financing of most of the projects in the works here. (And there are a LOT of them.) (Actually, he didn't JUST buy. He just moved in. He bought close to a year ago. The latest units are selling for $80,000 more than what he paid.)

To: Haim R. Branisteanu who wrote (12141)	4/19/2004 2:10:12 PM
From: Jon Tara	Read Replies (1) \| Respond to of 110194

Haim, I think we must be thinking of two different things - I just realized that. I assume now you are talking about the loan that the builder himself got to secure financing of the construction? That, I don't know anything about. What I can tell you is that homeowners are routinly financing up to 100% here to buy unbuilt units. They finance 80% on a first in order to avoid PMI, and then they finance the rest on a second at a higher interest rate (typically up to .5-1% higher). The builders arrange these loans. In the case of the development that my friend bought into, the builders have their own mortgage company. He confirmed that his neighbor bought with 5% down. (My friend put > 20% down.)