Miami Real Estate Learning Center

HOW OLD ARE YOU? HOW AGE IMPACTS MORTGAGES

Getting a mortgage can be challenging for older borrowers with no regular income. Lenders base their mortgage decisions on income, assets, debts, and credit scores and scrutinize the source and likelihood of income continuing. Discrimination based on age is prohibited (It is not in other countries) but lenders may consider age-related factors such as impending retirement.

All types of income, active and passive, are included when qualifying an applicant for a mortgage, but the process of verifying that income may vary. For retirees who rely on an investment portfolio, qualifying for a mortgage is slightly different. The methods vary depending on whether the retiree takes the required minimum distributions or dips into the portfolio when needed.

Before applying for a mortgage, older adults should consider working with a lender experienced in dealing with older borrowers to increase the chances of approval. Understanding the impact of cosigning for someone else's loan is important, as this can affect credit scores.

Alternatives to a home mortgage, such as asset-based loans or investment credit lines, can be considered for short-term financing needs. Additionally, when withdrawing money from nonretirement accounts, lenders may use the asset depletion method to calculate monthly income, taking into account only 70% of the investment portfolio.

In conclusion, age in not only a number so buy now as quickly as you can !

HOW FLOOD RISKS MAY BE INFLATING THE HOUSING MARKET

According to a new study, U.S. homes are overvalued by billions of dollars due to the flood risks posed by climate change. Being in real estate, maybe I shouldn't talk about it but I thought it was very interesting. The study found that the actual cost of flooding is not reflected in home prices or insurance rates, resulting in homes being overvalued by an estimated $63 billion. The researchers suggest this could lead to a housing market crisis similar to the one experienced in 2008.

4.3 million homes and businesses are at substantial risk of flooding, but only 1.6 million properties are currently listed in Federal Emergency Management Agency (FEMA) flood zones. This indicates that many at-risk properties are being sold for more than their actual value, as buyers may not be aware of the risks associated with flooding.

RENTERS FOLLOW THE MIAMI SUN, DRIVING UP HOUSING PRICES

Many renters are seeking refuge in the warmth of Miami. One factor driving this demand is the warm and sunny weather that Miami is known for. Many people are drawn to the city’s beaches and outdoor lifestyle. In addition, Miami is a global hub for business and finance, making it an attractive destination for professionals and entrepreneurs.

The impact of rising rent prices on Miami's affordable housing crisis, and notes that some residents are being kicked out of town as a result. The situation will likely worsen if Miami's housing market continues to boom, as this could lead to further displacement of low-income residents.

As the city continues to attract new residents and visitors, the cost of rent will likely remain high in the near future. However, efforts to increase affordable housing and implement rent control measures could help to alleviate some of the financial burdens on renters.

DEAL OF THE MONTH: BISCAYNE BEACH #4103

• Price: $1,199,000

• 1,137 Sqft

• 2 Bedrooms / 3 Baths unit

• Biscayne Beach and Ocean views

• Amazing facilities

• Located in Edgewater