Get your condo! – Financing is available for The Harrison
Posted by admin in City & County Government, Harrison BoondoggleThanks to a faithful reader for providing this information.
There is not a lack of financing available for condos at The Harrison, contrary to what Ben Lanka and Greg Leatherman might have you believe. Star Financial has financing available.
Star Financial Bank provided this in an email:
I appreciate your willingness to let people know we are willing to offer 6 – 90% LTV loans combo 80/10/10 loans to avoid MI. (mortgage insurance)
David Egts
Mortgage Sales Manager
Star Financial Bank
An 80/10/10 LTV loan plan combines two mortgages with a down payment: an 80% first mortgage, a 10% second mortgage, and a 10% down payment. Though the buyer finances 90% of the cost of the property, the buyer avoids paying the expensive mortgage insurance required on a 90% loan by dividing the amount financed between two mortgages. The buyer will pay a higher interest rate on the smaller mortgage, however.
To date, no one has called Star Financial about getting a loan, and nowhere on The Harrison’s web site is Star Financial mentioned as a source for a loan.
AWB
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I believe the media refers to our economy as the “worst economy since the great depression”. I’m ok with that, if they are referring to the Carter adminstration as the great depression.
I am not a big fan of 80/10/10 (or 80/20) as they used to be. PMI isn’t all that expensive when you consider the higher rate of interest on the second loan. It is true it gives you probably an extra $50 bucks in cash a month, but your lack of movement on principle over the long run is weak.
But I hope the Harrison Square project success. I think it is what Fort Wayne needs. They just need to put a grocery store downtown and I think you’d see a lot more movement down there. Which would bring more restaurants. Which would bring more people (especially young people). Which would hopefully bring more jobs.
Alright, I am going to make one more comment after checking out the Harrison website.
Two HUGE mistakes they make: one I can’t believe they have neglected, the other is more common but still a mistake.
One, they don’t have specific floor plans for each of the models. If I want to see how the rooms lay, etc…I have got no idea. The only thing I know is where they lay in the building and what the overall square footage is.
Second, put a freaking price range. I get that there is a lot of nuisance in negotiations and specific features. But what are we looking at a starting price? I know they want you to contact them so they have you in the database, but I think building projects make a huge mistake in not putting a starting/asking price for each floor plan because it doesn’t give anyone an idea of if they can afford / etc…
What is the monthly maintenance fee? That could be a steep addition to the monthly payments.
Andy Borgmann,
According to an Journal Gazette article from last May, the condos’ price range is $149,000 to $349,000. According to the Census Bureau, the median value of a house in Fort Wayne is $98,000. These condos are an “if you have to ask the price, you can’t afford it” sort of thing.
Robert – thanks for the info.
That mindset is part of the problem. There isn’t a 1,700 sq/ft condo in the city of Fort Wayne that can have the mindset if you have to ask… It just isn’t New York or LA.
I live in Atlanta and bought a 1,800 sq/ft townhome for about $180k (100 sq/ft) – in Alpharetta which is for good or bad: essentially the “Southwest Allen” of Atlanta.
If they are charging 350k for the 1,700 sq/ft condo, you have got to be kidding me. The average home in Atlanta is 200k (twice that of Fort Wayne).
My best friends just bought a 3800 sq/ft home in Eagle Creek in SWAC for around 200k. I know there is a “premium” living downtown, but come on. Using the above situation, my friends paid $52 sq/ft. Harrison would be asking for $205 sq/ft.
It just doesn’t make sense.
Denise – you are exactly right on that. I wonder that one as well. I was looking at purchasing a downtown condo in Atlanta that was in the ballpark of 400k – and the monthly fee was close to $600. Downtown condo style fees are usually pretty high – especially with a “patio” on the roof (does that have a pool?)
I am kind of bummed to hear all the negative news regarding the project. I am hoping to move back to Fort Wayne at some point and I really, really like the concept of Harrison. I hope the project is a success, I just think it needs to be marketed / priced better to do so.
A lot of people supported the project because it represented change in Fort Wayne. I can understand people getting excited over something new, especially in a town where new things don’t seem to happen. But HS just wasn’t a well-thought out project. The condos had to be upscale so they could generate more property taxes in order to payoff the bonds that financed the ballpark. The more complicated a plan, the more things can go wrong.
This project made sense on the surface. I’m just not a fan of the government trying to stimulate an area that no one wants to go down to. Plus, if most of you remember the quoted what South Bend did. Then when people heard that they checked into it and found out there is nothing downtown next to stadium in South Bend. Then they referenced Toledo. Then when people heard that they checked into it and found out there is very little downtown that wasn’t there before the stadium. Same thing when they started using Dayton as the example. All we heard about was, the team is selling out every game. Well no new industry around the stadium, and now that the team has been around awhile it doesn’t sell out as much. Good economy or bad “as andy referred” you can’t sell a condo in Fort Wayne, Indiana for that amount and expect people to fall all over themselves to get in there.
My wife and I have had money down on the Harrison Square project for approximately one year. We remain committed to the project. We firmly believe that any city must have a thriving downtown. Yes – times are challenging – when aren’t they? We believe that life is a series of calculated risks. This is certainly one of those risks that we believe is well worth taking. We eagerly await construction and completion of the entire project downtown.