Category: Financing a Loft

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Reverse Rising Interest Rates with Seller Concessions

Getting interest rates lower for a faster, easier home sale

REAL ESTATE NEWS (Los Angeles, CA) — Interest rates are going up, but here are some excellent solutions. Seller carry financing, seller mortgage rate buy-downs and other seller concessions can make it easier and more affordable to buy a home. Turn high interest rates upside down! Sellers are providing more help to buyers, with the help of some home loan professionals.

As the market slows down due higher interest rates, here is a quick bulletin to help buyers and sellers to get a property sold — even a non-warrantable condo listing! It starts with two powerful words: Seller Concessions. The Loft Blog knows of some local area mortgage professionals who have multiple loans locked this month at 4.99% for litigated condos. All of them have seller concessions, used to buy down the note rate from approximately 6.5% to 4.99%. Most are 3.00% concessions.

Here’s the math for a $600,000 property listing:

Scenario #1. Buyer and seller settle on a $585,000 price (a 3% price reduction) no concessions, and buyer gets a 30 year fixed mortgage at 6.5% (6.539% APR) 0 pts, on a $438,750 loan (25% down)

Payment is $2773 P&I and down payment is $146,250.

Scenario #2. Seller counters at full price with a 3% seller concession instead of 3% price reduction. Buyer gets a 30 year fixed mortgage at 4.99% (5.296% APR) with a 3% loan origination fee paid by the seller concession, on a $450,000 loan (25% down) Payment is $2413 P&I and down payment is $150,000.

Scenario #2 gets the deal done.

The buyer gets a rate of 4.99% and only has to put down $3750 more, AND, has a payment that is $360 less than Scenario #1. They make back the $3750 in 10.4 months with the reduced payments!!!

The best part is: It’s a wash for the seller, as they net the exact same amount.

PS. It works the same for single family homes too, with rates now back to 3.99%.

Experienced mortgage lenders say that this market will wash out many lenders and agents, but hard work and out-of-the-box thinking can make a home sale happen. New ways of financing are an absolute must to survive for prospective home buyers, sellers and investors.

Request a free report, and tell us about any desired transaction that might benefit from this winning combination of mortgage loan with seller rate buy-down. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

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Home sale quicker with an interest rate buydown through seller concessions

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.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.

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Buying a Loft or Condo? Follow These Guidelines to Make Sure It’s Right For You

Urban LIving in DTLA puts everything you need in walking distance

If you are in the market to buy a condo or loft, it’s important to understand the differences between living in a community based building versus a single-family home and to determine if the Loft/condo lifestyle is right for you. Condos make the most sense if you want to live in an area where tradtional homes are too expensive, or don’t exist.

Condos are usually less expensive than single-family homes and have lower maintenance requirements, making them good options if you are not looking to be handy or crafty. Plus, if you want to take off you don’t need a house sitter to water your lawn.

Loans are harder to get for a condo, and more so for a loft because some lenders have strict requirements regarding owner occupancy and loan-to-value ratios.

Condo owners pay monthly fees that cover the cost for ongoing maintenance and repairs of common areas within the complex, such as the grounds, pools, lobbies, elevators, and recreation rooms. On the up side your property will always be well maintained for you to use.

Should you own a condo or loft? 

One of the first things you need to ask yourself is, “Are you the condo type?” What exactly does that mean? Being a city-dweller, for one. Many condos are located in urban settings. Condos are springing up all over the 213 LA core. New developments from Hollywood to the downtown core neighborhoods, and and some are even building items of convenience right into the development, including grocery stores, bank branches, and other businesses. With that convenience may come more noise and congestion.

If you are thinking about a certain location for a potential condo purchase, check the area out at different times of the day and night to see how loud or brightly lit it is. If noise or light is an issue for you, this may not be the right choice. If you want to live in DTLA a loft or condo is going to be your best option.

One of the things that come with condo ownership is the Homeowners Association (HOA). It sets out a declaration of covenants, conditions, and restrictions (CC&Rs) that lists things that you, as the condo owner, must comply with in order to live there. If you find that you won’t be able to abide by the CC&Rs, condo life might not be for you. Non-compliance could mean you could be fined, forced to comply, or even sued.

Purchasing a condo may be more difficult than purchasing a house. Lenders are very careful when giving out loans for this type of residence. They usually require that a certain percentage of the units have people living in them, or are, as they call it, “owner-occupied.”1

Another restriction may be how many condos are allowed to be owned by one investor. Usually, lenders do not want one person to own more than 10% of the units in a building.2 Many times, lenders will also have regulations relating to the building’s occupancy rate. Some lenders require at least 90% of the units to be sold before offering any financing.

Condominiums can be a good investment for the right buyer in the right location when times are tough, though they can be harder to buy and sell than a detached house. Before purchasing a condo, be sure to do your due diligence and check out the HOA, CC&Rs, and any tax and insurance situations.

#loftsinla #DTLAcondos

Source Article from investopedia

Why are you looking to buy a condo or loft? #Share your Story

Condo Buyers use this guide to narrow down your search. Fill out the online form.

Also, be sure to get a real estate agent and a loan officer that has a lot of condo sales experience, as the issues surrounding such a purchase are not as simple as those with a traditional single-family home.

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | Popular | Luxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Is the urban condo life for right for you?

Copyright © This free information provided courtesy L.A. Loft Blog with the information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. We are not associated with the seller, homeowner’s association, or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com, Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties are subject to prior sale or rental. This is not a solicitation if the buyer or seller is already under contract with another broker.