Unlocking New Opportunities: Non-Warrantable Condo Financing Just Got Easier

In the bustling cityscape of Los Angeles, the real estate market is witnessing a transformative change, especially in the world of condominium financing. This change is not just a ripple, but a significant wave, opening doors for a myriad of investors and homeowners. The latest development in non-warrantable condo financing is set to revolutionize how we approach property investments.

The Big News: Expanded Financing Options

The heart of this transformation lies in the expanded range of financing options now available to potential condo buyers. Historically, securing financing for non-warrantable condos has been a challenge. The same goes for condos involved with lawsuits or litigation. These properties, typically not meeting the criteria set by government-sponsored enterprises, were often overlooked by traditional lenders. However, the tide has turned.

Jumbo Loans: A Giant Leap

Jumbo loans, previously a distant dream for many, are now accessible up to a staggering 2 million dollars. This leap in lending limits is a game-changer, particularly in high-cost areas where standard loan caps fall short of the mark. These loans cater to those eyeing premium properties, bridging the gap between aspirations and reality.

Versatile Loan Structures

The introduction of Adjustable Rate Mortgages (ARMs) and Interest Only Loans brings a newfound flexibility. ARMs, with their initially lower interest rates, are perfect for those planning on a shorter stay in their property or expecting a future increase in income. Interest Only Loans, on the other hand, reduce the initial financial burden, allowing borrowers to pay only the interest for a set period.

The Bank Statement Program: Self-Employed Friendly

A standout feature is the Bank Statement Program, tailored for the self-employed and entrepreneurs. This program bypasses the traditional income verification process, using bank statements instead to assess financial stability. It’s a nod to the growing gig economy and the changing face of the workforce.

Investment Property Purchases

The real estate investment landscape is also receiving a boost. Now, with just 20% down, investors can dive into the property market. This lower barrier to entry is set to attract a new wave of investors, keen on exploring the lucrative condo market.

The Financial Details

Interest rates for these new programs are competitive, starting at 6.875% note rate (7.295% APR) for ARMs. This pricing structure is designed to balance risk and accessibility, making these loans an attractive option for a wide range of borrowers.

The Impact on the L.A. Loft Scene

Los Angeles, known for its vibrant loft and condo market, stands to benefit immensely from these developments. The city’s eclectic mix of historic and modern lofts, often categorized as non-warrantable, are now within reach for more buyers. This financial inclusivity is set to invigorate the market, driving demand and diversity in housing options.

Los Angeles

The shift in non-warrantable condo financing is a beacon of progress in the real estate sector. It reflects a deeper understanding of the evolving market needs and a commitment to catering to a diverse range of buyers and investors. With these expanded financing options, the dream of owning a piece of Los Angeles’s unique architectural landscape is more attainable than ever. For those navigating this exciting terrain, the journey just got a little easier, and the possibilities, a lot more exciting.

Get a free list of loft lenders, litigation lenders and non-warrantable condo lenders in Los Angeles. Fill out the online form.

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Please note: Financial details and rates are subject to change. It is recommended to consult with a financial expert to understand the latest terms and conditions.

Downtown Los Angeles Lofts For Sale with Low Down Payment and Seller Carry Financing

Seller Financing

Seller Carry Back Financing
Seller Carry Back Financing

Banks and mortgage lenders provide financing for the majority of Downtown L.A. loft sales, but they are not always the right source of purchase funds. About 20% of Downtown Los Angeles loft sales are paid for in all cash from the buyer.  Some are unaware that the seller can sometimes help with financing as well.  This is called a Seller Carry because the seller carries all or some of the financing. The seller acts as the lender.

Seller carry backs are most appropriate when the seller does not immediately need all of the cash from the sale, and the seller can let the buyer make use of the funds. The seller might want a quick transaction, and the best prospective buyer cannot use or does not want to use a traditional bank or mortgage lender financing because the buyer does not have a regular job, but has plenty of assets or miscellaneous income. #sellercarry #loft #financing

Owner-provided financing is sometimes advertised in property listings or advertisements as seller financing or owner will carry (OWC). Once very popular around 1980 when interest rates were 20%, seller carry backs are again growing in popularity as getting traditional home loans from banks becomes more challenging due to recent regulation and restrictions. Challenging loft buildings such as SB Grand also represent a good example of where seller financing may save the transaction when loft lenders fail.

Seller Carry Financing Sales the Day
Seller carry financing helped sell a luxury condo for $150,000 more, 38 days faster.

When a homeowner wants to sell a home but has trouble getting enough qualified buyers due to tight lending practices, the seller can “carry back” the note on his own home sale. The buyer and the seller sign a promissory note in which the buyer promises to pay a specific amount of money, with a specific interest rate, at a specific time. The seller moves out, the title transfers, and the seller collects monthly payments from the buyer.  Escrow can help by generating some of the required paperwork. More seller carry info at MoneyUnder30.com.

Get a free list of FHA/VA low down payment lofts and condos in Downtown Los Angeles. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

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Seller Carry Financing
Seller Carry Financing

Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com  Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.