Lofts usually require a loft lender. This post will help you understand why, and will inform you on which buildings need a loft lender, and will guide you toward finding the right loft lender for the right building.
More than half of the homes for sale in Downtown Los Angeles are industrial or commercial buildings that have been converted to live-work residential buildings under the Los Angeles Adaptive Re-use Ordinance. These structures were built for business, and they are still listed in the records as industrial and commercial buildings, with a note added that they are currently used for residential purposes recognized by the U.S. Postal Service and by most other organizations.
Not everyone sees, understands or observes the ordinance however. Some real estate professionals, such as home loan companies and most banks, run into confusion and failure when they attempt to lend money on a loft. The home loan company usually has no knowledge or experience with lofts. They likely have never heard of an adaptive re-use ordinance. A problem often occurs when a home loan company or credit union is asked to finance a loft because they initially approve the borrower without looking at the property. The lender does not begin to check the property until it is in escrow, and sometimes does not finish checking the building until after the buyer has signed off on the contingencies. The home lender then calls the buyer with devastating news: “… of course we cannot lend on commercial buildings; we are a residential lender.” The buyer is then faced with losing the property or paying $100 per day for delays.
This is one of the most common home-buying disasters in Downtown Los Angeles. This problem is most likely to happen when the loft seller uses an out-of-area agent and the buyer also uses an agent who is not a Downtown specialist. They have no idea of this common problem. They also have no idea about the lawsuits related to 20% of the listings and other issues that Downtown buyers need help with. Buildings with lawsuits often require a litigation lender. These are some of the main reasons why buyers in sellers in Downtown should consider using Downtown specialist agents and loft specialist lenders.
Why You Should Consider A Loft Lender
A loft lender has the experience and resources of many lenders, including banks, mortgage companies and portfolio lenders, to offer a variety of products, including loft loans, condo loans and home loans.
For a free list of Downtown loft specialist lenders, visit
http://www.coreychambersla.com/gold_affilform2.asp or CLICK HERE
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DOWNTOWN LOFT & CONDO: FOR SALE | RENTALS | SUBSCRIBE | VIDEO
Corey Chambers, REALTOR®
L.A. Loft Blog, 816 S Broadway, Los Angeles, CA 90014
The #1 Downtown buyer’s agent with 19 successful buyer transactions closed in 2013, Corey Chambers is a Realtor®, and member of the Top 6 award-winning, 5-Star Yelp rated team. J.D. Power Award 2012 – Keller Williams Realty ranked Highest in Overall Satisfaction for Home Buyers and Sellers Among National Full Service Real Estate Firms. DRE#01889449