Upcoming FHA Guideline Changes and April Tax Credit Deadline Mean The Time To Buy Is Now
Jersey City, N.J. (Mar. 3, 2010) – Trump Plaza Residences has been able to place many buyers into their dream homes at the 55-story Jersey City luxury condominium tower due in large part to the property’s FHA (Federal Housing Administration) loan-compliant status under which the federal government insures private loans to qualifying borrowers.
FHA mortgage terms for New Jersey, differentiating from county to county, allow for loans up to $729,000. The majority of prospective buyers at Trump Plaza Residences are first-time homebuyers seeking homes in the $450,000 to $600,000 price range, therefore qualifying for FHA financing. FHA loans have no income limits, allow for less-than-perfect credit histories and allow buyers to put down as little as 3.5 percent, compared to 10 to 20 percent for a conventional mortgage.
“Being able to tell prospective buyers that the property is FHA-qualified makes all the difference to those who didn’t think a luxury home at Trump Plaza Residences was within their reach,” said Jodi Stasse, director of marketing and sales at Trump Plaza Residences. “However, prospective buyers should be aware that the FHA guidelines are changing and that they should act now to take maximum advantage of the program.”
The FHA guideline changes, which go into effect this spring, could prevent a portion of borrowers from meeting the new, stricter requirements, said Ray Lamberti Jr., Trump Plaza Residences’ on-site Wells Fargo Home Mortgage representative. These changes, combined with the upcoming April 30 expiration of the $8,000 first-time homebuyer federal tax credit, have created a sense of urgency among buyers that has stimulated a surge in sales.
“The best thing first-time homebuyers can do for themselves is come in and talk to us today,” Lamberti said. “If there’s a chance the new guidelines could even slightly prevent a prospective buyer from obtaining a home here, then we need to work with that individual or family as soon as possible.”
Trump Plaza Residences Jersey City has already sold out over half of their 443 homes. The sales team takes pride in the care and attention they show to prospective buyers, offering them comprehensive financial guidance and consultation so they can find homes that will fit their budgets and fulfill their lifestyle needs. In addition, they help prospective buyers understand all components of their financial obligations, from monthly mortgage payments to maintenance fees.
A major appeal of Trump Plaza Residences is the incredible 40,000 square feet of lavish, Trump-managed amenities, including a screening room; a dining room with a catering kitchen; an outdoor landscaped lawn area; a game room; sitting areas and lounges; an aqua grotto; a heated outdoor pool with cabanas; an in-house spa including massage facilities, locker rooms and saunas; a business facility and a fitness center.
As the tallest residential tower in Jersey City, the building also features panoramic views from the George Washington to the Verrazzano Narrows bridges, and a convenient location near the PATH station, the waterfront ferry and the Bergen-Hudson Light Rail that puts all of Manhattan and the Gold Coast at residents’ doorsteps.
The homes at Trump Plaza Residences include one- and two-bedroom homes ranging in size up to 1,450 square feet. Prices for the one-bedrooms start in the mid $400,000s, while the two-bedrooms start in the mid-$600,000s. Three-bedroom homes and penthouses are available but are in limited supply, with pricing available upon request. The city has granted the building 20-year tax abatement, which translates into reduced property taxes for buyers.
“With the new FHA guidelines taking effect in the spring, the federal tax credit expiring in April and the 20-year tax abatement, I can’t imagine a better time to buy than right now,” Stasse said. “Plus, interest rates remain at or near historic lows. The fact that this fortuitous confluence of circumstances is unlikely to come again provides an incredible incentive for first-time homebuyers who are still on the fence to realize their dream of owning a home at Trump Plaza Residences.”
The details of the new FHA guidelines were announced last month, Lamberti said. The changes were initiated as a means of addressing the increased risk in the housing market and strengthening the FHA’s capital reserves, thus improving their financial position and ensuring their long-term ability to guarantee affordable mortgages.
Under the new guidelines, mortgage insurance premiums (MIP) will increase from 1.75 percent to 2.25 percent of the loan amount. In addition, there is a reduction of the allowable amount of seller concessions to the buyer from 6 percent to 3 percent. In the past, sellers could offer up to 6 percent of the home’s closing cost to the buyer as an incentive if the buyer used an FHA mortgage; now, the allowable concession is only 3 percent of the closing cost.
Other advantages of an FHA-insured loan include little or no adjustment to the mortgage interest rate during the life of the loan, a mortgage insurance premium (MIP) that is funded into the loan instead of being paid for out-of-pocket and the fact that the mortgage can be assumed by a qualified buyer, which means that if the seller’s mortgage carries a lower rate than the current market rate, the buyer can take over the seller’s mortgage. This is a great option for the buyer to have if they sell their unit five or six years later and the rates are higher at that time.
Yet another big advantage of a FHA-insured loan in today’s climate of widespread job displacement and workforce reduction is that, unlike with a conventional mortgage, friends or relatives can gift the down payment to the borrower.
For more information on Trump Plaza Residences Jersey City, please contact the on-site sales and marketing team by calling (888) 263-7003, e-mailing [email protected] or visiting the Web site at www.trumpplazaresidences.com
About Trump Organization
The Trump Organization is the world’s only global luxury real estate super-brand, and is responsible for many of the world’s most recognized developments. Trump is renowned for its leadership in real estate development, sales and marketing and property management, representing the highest level of excellence and luxury in residential, office and retail properties. The experience of owning a Trump property and living the Trump lifestyle is unparalleled. With each of its properties, Trump continues to consistently raise the bar for super luxury living.
