K. Hovnanian Says Plenty of Mortgage Money Available

Despite national news media reports, there is plenty of mortgage money available for New Jersey and New York homebuyers with verifiable incomes and assets and good credit, according to officials of K. Hovnanian Homes, New Jersey’s largest homebuilder.

In addition, the company is offering special mortgage plans based on standard 30-year fixed-rate mortgages on specific communities and homes. For instance, K. Hovnanian is buying down standard fixed-rate 30-year mortgages on quick-delivery homes in Northern New Jersey and New York.

“Real estate is very local and very personal,” Randy Hix, sales manager for K. Hovnanian in those areas, said. “Too many people are missing a great opportunity to purchase a home at a low price with a low interest rate because they’re listening to the news. Whatever is happening on a national basis, you have to ask what’s happening where you are buying and selling. In this area, most people will find it’s a good time to choose a home at a great price and lock in low mortgage rates to get the most affordable payments I’ve seen in years.”

Hix and Dan Klinger, president of K. Hovnanian American Mortgage, said discussions of a credit crisis are really about how banks are treating each other. While it impacts everyone’s life, mortgage companies like K. Hovnanian American have money.

“There is plenty of mortgage money to go around,” said Klinger. “A person who can verify his or her employment, has established the ability to save money, and has paid his or her bills on time will have no problem getting a mortgage.”

Klinger said loan limits have been increased by the Fannie Mae and the Federal Housing Administration and there are new financing options that are based on solid, dependable mortgages.

“Gone from the market are the loans that didn’t make any sense,” Klinger said. “We are simply back to fully documenting loans. For the fully qualified, we have plenty of money to go around.”

John Cummins, sales manager for K. Hovnanian Homes in central and southern New Jersey agreed, saying issues of mortgages and financing are the main concerns for homebuyers who understand that home prices in New Jersey won’t drop much further if at all, and that very few new homes are being started.

“Nobody’s looking for or offering gimmicks any more,” said Cummins. “We know we need to offer a competitive rate that creates a comfortable monthly payment for a well-built home in a good location that matches a customer’s lifestyle. That combination is getting people off the bench, despite what the media is saying.”

To encourage buyers and help it reduce inventory, Hix said K. Hovnanian was offering a 3-2-1 buy down in North Jersey and New York on quick-delivery homes sold by Oct. 31. For those who qualify for a fixed-rate, 30-year mortgage at 6.19 percent, it means payments will be at 3.19 percent for the first year, 4.19 percent the second year, 5.19 percent the third year and finally hit the 6.19 percent rate in the fourth year. The dollar figure depends, of course, on the home and the community.

“There’s no better way to get a lower payment than to drop the interest rates for three years,” said Hix. “It beats any gimmick or incentive anyone else might offer.”

Cummins and Glen Ward, director of sales and marketing for Matzel & Mumford, a division of K. Hovnanian, said a variety of mortgage programs were available in their communities and that details were available at the individual communities. Information on each community is available at www.khov.com.

The three sales executives said K. Hovnanian and Matzel & Mumford communities were open and seeing steady traffic and sales.

“Visit any of our communities and you’ll see an open sales office with eager, helpful staff and you’ll see homes being built and delivered,” Ward said. “We’re well aware that in the relatively few other places new homes are being built, you have to make an appointment for the builder to open the office for you. We’re here. We’re open all week, all day. And we’re busy enough to suggest appointments.”

K. Hovnanian Homes is the largest homebuilder in New Jersey and sixth largest homebuilder in the nation. Founded in 1959 by Kevork S. Hovnanian, chairman, the company sells homes in 19 states and the District of Columbia. Matzel & Mumford became part of the K. Hovnanian Family of Builders in 1999. The parent company, Hovnanian Enterprises, Inc., is headquartered in Red Bank, N.J., and sold 14,928 homes nationwide during 2007 under several names. Of those, 1,756 were sold in New Jersey, New York and Pennsylvania. Additional homes in those states were sold through joint ventures. The company reported $4.8 billion in total revenues in Fiscal 2007.

K. Hovnanian builds planned communities that include single-family, townhomes and garden homes. In addition, it constructs homes in mid-rise, high-rise and mixed-use buildings. The company also is well known for its active-adult homes, branded as K. Hovnanian’s Four Seasons, and its expertise in community redevelopment and environment rehabilitation. More information is available at www.khov.com or at 888-KHOV-HOME.