Tag: Litigation lenders

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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.

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Downtown Los Angeles Unwarrantable Condos and Loft Loans and Lenders

Alta Lofts recently entered into the settlement phase of litigation as the builder developer agreed to reimburse the HOA for construction defects.

Lawsuits and unwarrantable condo loans

Litigation is but one of many issues that can affect a buyer’s ability to get a home loan. Most lofts have issues that buyers want to know about before going to see the property for sale. They often need a loft lender for successful mortgage financing. Sometimes they require an unwarrantable condo lender or litigation specialist lender.  #lawsuits #unwarrantable #lenders

One of the biggest disasters in Downtown Los Angeles real estate that can be prevented has to do with home purchase mortgage financing. More than half of the homes for sale in downtown LA are industrial or commercial loft conversions using the city of Los Angeles Adaptive Reuse Ordinance.  These conversions are still listed in the records as commercial buildings. When buyers use a residential lender, especially a discount home loan company, the lender generally has little knowledge or experience with lofts.  The friendly mortgage broker says “Yeah sure I’ll hook you up no problem”. But, he does this without checking on the building type first. The major problem happens weeks later when the home is in escrow and the underwriter finally checks and sees that the building is listed as an industrial or commercial type, and it has unusual issues such as no floor, and the lender has not given them an HOA questionnaire previously. The buildings are often mixed-use with some units allocated specifically for commercial purposes.  The disaster happens when the lender eventually says, at the end of the escrow period, that they will not finance the building, or there will be a lengthy delay or significant extra expenses such as higher mortgage interest rate, higher fees or per diem fees to reimburse the seller for waiting on the delayed escrow.  The property often falls out of escrow at this point, and the buyer and seller must both start over.  This problem happens all the time unfortunately, especially when both the buyer and seller use out of area agents and out of area lenders who are not familiar with the special needs of loft real estate transactions.  By using a loft specialist lender from the onset, this problem could have been prevented.

Other buildings have many renters or other more serious issues that nearly all lenders will find unacceptable.  These are buildings that home loan companies, banks and even loft lenders will not loan on. They are called unwarrantable condominiums.  Fortunately, there are some lenders that specialize in non-warrantable condos.  These are direct lenders for condos with the most difficult of problems, often HOA litigation and lawsuits involving the home owners association.  A litigation lender or unwarrantable condo lender can do 30-year fixed loans up to $2,000,000 for purchase or refinance with cash out.  They can lend on: projects where one entity owns more than 10% of entire project, such as SB Grand lofts; mixed use complexes with up to 80% commercial/retail; high HOA delinquency rate and/or budget issues; new developments with no minimum pre-sold; complexes with high percentage of renters; condo-tels condominium hotels on a case-by-case basis. Originators of non-warrantable condominium loans have excellent, reliable results, and will usually need to charge a bit more interest and fees to cover the added risk that they incur in dealing with these buildings.

Get a free list of loft and condo buildings with litigation or lawsuits. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

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SB Grand 312 W. 5th St. unwarrantable condo

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.