Some Downtown L.A. loft condo buildings such as SB Grand lofts and a few others have issues that can make it difficult to finance units in the building. The reasons often involve high renter ratio, mixed-use, industrial or commercial buildings and incomplete or minimal HOA financial documents. Can buyers get a mortgage in these buildings? #unwarrantable #condos #dtla
Yes, it can be done. When a condo project is deemed non-warrantable, the choices that exist will usually come at slightly higher mortgage rates and fees than a conforming or “warrantable” loan. The lender generally needs to have appropriate portfolio investor connections or investors “in house” that make exceptions for non-warrantable condos. The DTLA agents and brokers who specialize in these most challenging of lofts only know of 2 or 3 lenders who can make it happen.
Downtown L.A. Directory: Housekeepers, Home Inspection, Lenders, Agents and Attorneys #dtla #loft #directory
Downtown L.A. lofts present special challenges and opportunities for owners, residents and home sellers due to their unique industrial, historic and commercial attributes. Large open spaces with high ceilings exposed plumbing are common. The physical and legal requirements can quite often differ from a suburban house. Below is a list of Downtown LA loft specialist janitors, home remodeling companies, home inspectors, mortgage loan and Realtors who can help loft home buyers, sellers, renters landlords.
Lety the Loft Cleaner 323-239-6147
Home Improvement Contractors:
DC Keeton 213-232-4783 dckeeton.com
Home Inspection Companies:
LaRocca Home Inspection 818-951-1795 www.laroccainspections.com
Prime Home Inspection 310-869-5781
Loft Lending Problems: It is the #1 most common disaster with Downtown loft sales and purchases. #loft #loans
Most buyers and sellers have no idea how extensive the problems is, the delays and failed home sales that it causes. Unfortunately, they don’t know how to solve the problem because they don’t know who the loft specialist lenders are.
Most lofts are industrial and historic building conversions under the Los Angeles Adaptive Re-use Ordinance. Lofts are rare and unique in California real estate. Because most mortgage lenders don’t really know what a loft is, they often incorrectly tell the buyer and seller up front that it will be no problem, then later, when the property is in escrow, the lender or underwriter finally reveals the truth. They finally discover that the loft has issues and therefore the lender cannot lend on it or there will be costly delays or additional loan fees. Fortunately, this problem can be prevented when buyers and sellers know ahead of time which is the best lender for each particular building. Just like all lenders vary, all buildings vary greatly on building type, zoning, ordinance, FHA/VA status, Mills Act status, lawsuits, litigation, commercial percentage, sold ratio, renter ratio, HOA reserves and maintenance status. In almost all cases, it pays to use a loft specialist lender for a Downtown loft transaction because the lender has already approved the building, preventing needless delays and unanticipated costs.
More than 20% of Downtown homes for sale listings involve a building that is currently or recently in a lawsuit or litigation. Sometimes a litigation lender must be used.
Chase Bank has just released the above list of Chase approved Downtown buildings. While it is helpful when a large bank like Chase is making an effort to help buyers and sellers in Downtown Los Angeles, there are other smaller lenders that have been more focused and more successful because they are already more established in Downtown lofts, have approved more buildings and have compete more loans recently in some of the most challenged Downtown loft buildings.
Get a free list of the top Downtown loft lenders that can lend on nearly every building in DTLA. Fill out the online form:
Before seeing homes or meeting with a real estate agent, prospective Downtown LA home buyers should be aware of some of the most common problems and how to avoid them.
These problems include: lawsuits, litigation, loft and condo lending problems, getting trapped by a real estate agent, missing out on the best deals, losing out to other buyers, failing to negotiate the best price and terms, delays due to failed inspections, HOA move-in delays, unpermitted improvements, risk of losing deposit and no electricity. Here’s how to make the home buying process go more smoothly and to profit in DTLA:
10 IMPORTANT HOME BUYING TIPS:
The #1 mistake that we have seen since 2011 is prospective buyers delaying a home purchase. Prices have been going up about 1% every 6 months for the last several years, with rents going up about the same. Homeowners have gained an average of more than $200,000 in equity, while renters have really lost out in terms of net worth.
Place the highest and best offer on the very first day of a listing. Prices and terms are negotiable. Buyers may ask the seller to pay some of the expenses such as closing costs. If buyers asks for too much, they may lose to another offer. Buyers should get a list of comps, recently sold comparable homes, in the building or neighborhood so that he buyer can see first hand what buyers have paid recently for a similar home. #dtla #buyermistakes
Most purchases entail delays and unexpected miscellaneous expenses. Some transactions fail after incurring expenses for the prospective buyer. Some borrowers are unable to obtain financing. Loft purchase may require a loft specialist lender. They can be found at www.LALoftLoan.com.
Delays are common. Be sure to allow plenty of extra time for moving, and extra money for unanticipated costs.
Ensure that the seller has installed a carbon monoxide detector before the inspections.
For condos, HOA move in fee, move out fee and HOA move in security deposit are often required; ask HOA for details. A move in appointment and information form is required by most HOAs. Contact the HOA well in advance to make move in arrangements.
For houses, always ask seller for any permits pertaining to additions and major improvements. Buyers can get a free floor plan at MyFloorPlanFree.com.
Removing contingencies places the buyer’s deposit at risk. Do not sign off on all contingencies until sure that the transaction will be completed. Buyers must usually remove contingencies before seller completes repairs.
Electricity may be turned off before or right after the purchase. Order utilities in advance of move-in.
Buyer’s can avoid most mistakes simply by hiring at no cost a Downtown area specialist who is knowlegable about the buildings and neighborhood issues. A good local agent will take down the buyer’s home buying criteria, to help to get priority access to hot new listings, to aid the buyer in receiving proprietary information such as unlisted properties, and to show several homes when possible. A free home buyer consultation is the first step to a successful home purchase.
Buyers should pay nothing for this service, and there should be no obligation to buy a home. To expedite the process, buyers should give the agent proof of funds (a statement of an account with some down payment funds, black out the account number). Also, buyers will get priority service from agents and owners if buyer is preapproved for a loan. Get a free list of Downtown loft lenders who can finance a live-work loft, Mills Act loft, and other homes converted under the Los Angeles Adaptive Re-Use Ordinance. Fill out the online form:
UTILITIES DOWNTOWN L.A.
Call DWP to turn on electricity
Happy Veterans Day Downtown L.A.! #financing #lofts
As a veteran of the United States Air Force, it’s a special day for me and for our troops who are fighting and guarding us day and night. They all very much deserve our thanks! VA and FHA home loans are government sponsored financing to help veterans and also non-veteran first time homebuyers to afford the American Dream of home ownership. It turns out that helpful mortgage programs like these change sometimes, and, more often, become more or less effective based on changes in the housing market. Today unfortunately, FHA and VA are nearly 100% INEFFECTIVE in the booming Los Angeles housing market, especially for condominiums, and they have lately been totally useless for Downtown Los Angeles lofts for sale. But, there are other low-down payment alternatives.
The good news is that our heroes, both military and civilian, who thought that that they needed FHA or VA financing can find out that FreddieMac and other mortgage lender programs have plenty of low-down financing with 5%, 3% or even no down payment. The LA Loft Blog has posts with more details about the problems, delays and other issues that make VA/FHA impractical for Downtown lofts. >> MORE
While today may be the very best time to buy a home while competing buyers are dormant for the holiday season, there are few issues to be aware of regarding financing.
Most Downtown Los Angeles lofts are industrial or commercial conversions that are special exceptions under the City of Los Angeles Adaptive Re-Use Ordinance. Many residential lenders will completely fail, delay or charge additional points to try to handle loft financing.
More than 25% of currently active DTLA lofts and condos have current or recent litigation that can affect the livability, financing ability and investment potential of the homes.
Out of area lenders, especially out-of-state lenders will have more delays. The paperwork is often processed incorrectly and must be re-done. Just this week, a buyer who wanted to move on a weekend was forced to wait until the following week because her lender and notary in Texas signed a document in a way that was unacceptable in California.
New consumer protection laws are also causing bureaucracy delays. If a buyer needs to make a change to a signed mortgage agreement, it may now cause an extra 3-day delay for each change to the contract.
Keeping these issues in mind, most real estate and finance experts now agree that interest rates and monthly payments will be going up. Savvy buyers will take advantage of today’s low interest rates for the lowest monthly payment.
Because of the warm climate, and the fact that most Downtown Los Angeles buyers usually have no children in school, the home buying season starts very early in Downtown. Most prospective home buyers wait until after the holidays, and then there is a mad rush starting January 2. All of these buyers become competition for each other, driving up the price. The most dedicated home buyers will start in October through December as to take advantage of less competition, allowing the placing of lower initial offers and saving money on the final home price.
Secure the Best Financing Rates When Buying a Loft
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A new report has just been released which identifies a foolproof 3-point plan which any homebuyer can use to secure the best financing rates when they buy an industrial or commercial loft or condo.
When you’re looking to buy a loft, the first thing most homebuyers do is start the process of homehunting. However, experience proves that this is one of the last steps you should be taking if you want to get the most home for the least amount of money. In fact, shopping for the best financing should start long before you start shopping for a home.
The experience of thousands of area homebuyers has been summarized in a new report entitled “Best Financing: A 3-Point Plan”. This report outlines 3 critical steps you must take to obtain the absolute best financing rates when you buy a home. It tells you where you should go, what questions you should ask, and how to manage the process to your personal advantage.
Order this report NOW to learn how to obtain the best financing rates when you buy your next home. You will also receive information on getting the right financing for lofts and condos in Downtown Los Angeles. Visit http://www.LowDownLA.com