sitemap 
FIND THE HOME OF YOUR DREAMS!
FIND A LOW INTEREST LOAN!

• Apply for a Loan
• Applying for a Mortgage? What You'll Need to Get Started
• Ordering Your Credit Report
• Should You "Buy Down" Your Interest Rate?
• Are You Watching a Shell Game?
• Points and Home Equity Loans Deserve Close Attention
• Tighten Credit Habits When Lenders Tighten Credit
• Cheap ARMs Risky, But Offer Buying Leverage
• Can't Get In Touch With Your Loan Officer?
• Ratios And The Real World
• Seven Warning Signs Of a Bad Loan




How to Finance Unique Properties

I've got a buddy who's an architect that caters to the shall we say, eclectic home buyer. Not that his customers are all a few eggs short of an omelet, it's just that their homes could make the cover of Architect magazines or are converted drug stores, lofts or dance halls. If you are one of those lucky few who can find an old movie theater in a west Texas town that screams "turn me into a home," you'll soon find that conventional lenders can't help.

Even if one can get construction money to remodel an old barn into a residence it might be difficult to find a permanent mortgage to replace the construction funds.

Finding a way to obtain financing on such properties falls outside the box. Many times way, way outside. Agency loans (Fannie Mae, Freddie Mac) and other pools of money (RFC) insure that if a lender makes a loan under certain guidelines (theirs) then that lender can pretty much be guaranteed that loans' ability to be sold in the secondary markets.

These sales, sometimes individually (flow) or packaged up and bundled in millions of dollars of loans (bulk) provide liquidity in the markets resulting in, among other things, more competitive rates. These are about as close to a commodity in mortgages as they come. So what?

Such loans have two "underwrites", one for the individual (can they afford the home, do they have good credit) and one for the property (are there similar ones in the market area indicating a demand for that product to establish a market value on which to base the loan?).

If indeed the borrowers can provide at least three other comparable sales in the area of similar fashion and the property meets zoning requirements then it's more likely to get conventional financing. But most of these properties are anything but conventional. So what to do?

One is to take current equity out of other property to build or simply to find a "portfolio" lender. A portfolio lender, usually but not necessarily a retail bank, does not intend to sell the loan at any time and can therefore make any type of loan it wishes. In these instances, the bank is making a loan more to the individual and caring less about the property type. More akin to the days of the Bailey Savings and Loan. Making loans to individuals. These loans are usually of shorter term, say three or five years and can certainly be extended and such loans may not be available to everybody. Banks usually make these loans at the request of a bank customer in good standing or to individuals a bank may want to establish a relationship.

If this is you. If you've dreamed of renovating an old hotel and turning it into your dream home, understand at the very beginning that if you need money for the project, start looking now. You can find it, just in not as many places.

Written by David Reed
August 23, 2002

Feel free to contact me if I can be of any service!



* 
* 
* 
State
Comments
 Newsletter sign up?
 



* 
* 
* 
State
Comments
 Newsletter sign up?
 
Copyright © 2004 WestCoastHome.com | Resources | Contact Us | Privacy Policy | Terms of Use | Admin | Map   Site by RealtyTech Inc.


















Find A Home In Las Vegas and Southern California, including Los Angeles, San Diego, Orange County, Riverside, Ventura and surrounding areas!

Featured Homes In Las Vegas and Southern California, including Burbank, Santa Monica, San Bernadino and the San Fernando Valley!

Selling Los Angeles Real Estate, San Diego Real Estate, and Las Vegas Real Estate
What's My Home Worth?
Is It Time to Sell?
Lowering Your Capital Gains Tax Obligations
Inexpensive Ways to Make a Great First Impression
Setting Your Price
Our Current Buyers
Seller's Guide
Recent Local Home Sales
Testimonials

Buying Ventura Real Estate, Orange County Real Estate, and La Jolla Real Estate
How Much Can I Afford?
My Dream Home...
Buyer's Guide
Finding The Perfect Neighborhood

Relocating
Boomburbs" Define New Growth Patterns
Avoid The Sticker Shock Of Relocating

Financing your new home
How to Finance Unique Properties
Applying for a Loan? Start by Ordering Your Credit Report
Loan Application

Real Estate Financial Calculators
Refinance Calculator
Fixed Rate Loan Payments
Adjustable Rate Loan Payment Calculator
Balloon Loan Payments
Rent vs. Buy Calculator
Loan Comparison
Extra Payment Calculator
Mortgage Qualification Calculator
Home Affordability Calculator
Loan Calculator

About West Coast Home
Contact West Coast Home

Real Estate News

Privacy Policy for the Real Estate Website, WestCoastHome.com
Terms of Use for the Real Estate Website, WestCoastHome.com

WestCoastHome.com specializes in assisting buyers and sellers with all types of residential real estate, commercial real estate, and industrial real estate. Whenever buying or selling, WestCoastHome can assist in your transaction for a home, house, condo, townhome, townhouse, luxury estate, beach property, ocean side property, beach front real estate, mansion, vacation house, ranch, land, farm, castle, foreclosure, foreclose, reo, corporate relocation, apartment building, office, office building, retail center, shopping center, income property, residential income, 1031, 1031 exchange, triple net, leased, and property investments. Search multiple listing services: mls, property listing service, list your property, listing service, property posting, real estate listings, Automated Home finder, Socal mls, real estate mls, real estate listing service, real estate posting, mls, multiple listing service, fsbo, for sale by owner, sale by owner, cma, comparative market analysis, comparable market analysis, comps, comp, recent sale, customized listing campaign, customized marketing. Simplify the relocation process. Ask for a free consultation for free advice, when you are planning to relocate and home values. If you are a seller, you will be provided with a customized marketing and advertising listing campaign report complete with sales comps, free home valuation, and mls inventory evaluation. Besides info on real estate matters, internet mortgages, trust deeds, loans, school reports, home improvement, tax tips, and city, county, and state demographic information, property reports, Home buyers guides, Home Sellers guides and real estate investing, we can help with property management. Sellers can find their home value at http://www.WestCoastHome.com.  If you are a buyer or a seller, when you decide to buy or sell, choose an expert agent who knows the way to sell your home fast with the latest in technology. Depend on WestCoastHome.com  to help you in the So Cal neighborhoods of Orange county, Los Angeles county, Riverside county, Ventura County, Santa Barbara County. Las Vegas Nevada and San Bernardino county, the Inland Empire. WestCoastHome's web site features properties in the following cities, Newport Beach, Newport Coast, Corona Del Mar, Laguna Beach real estate, Costa Mesa homes, Irvine real estate, Tustin homes, Santa Ana real estate, Huntington Beach condo, Fountain Valley, Laguna Niguel, Laguna Woods, Lake Forest, El Toro, Aliso Viejo, Foothill Ranch, Dana Point, San Clemente, Mission Viejo, Laguna Hills, Rancho Santa Margarita, San Juan Capistrano, Orange, Fullerton, Villa Park, Yorba Linda, Placentia, Westminister, Garden Grove, Anaheim, Anaheim Hills, Corona, Norco, La Habra, La Palma, Hawaiian Garden, Cypress, Los Alamitos, Beverly Hills, Beverly Hills Post Office, Bel Air, Santa Monica, Los Angeles, LA, West Los Angeles, West LA, Westwood, Century City, Brentwood, Rancho Park, Beverlywood, West Hollywood real estate, Hollywood Hills real estate, Culver City, Westchester, Encino, Van Nuys, Sherman Oaks, Pacoima, Toluca Lake, Woodland Hills, Tarzana, Westlake Village, Agoura Hills, Thousand Oaks, Granada Hills, Topanga Canyon, San Fernando Valley, San Gabriel Valley, Glendale, Oak Park real estate, Burbank, Eagle Rock, Pasadena, San Marino, South Pasadena, Sierra Madre, San Gabriel, El Monte, South El Monte, Monterey Park, Azusa, Baldwin Park, Glendora, Bradbury, Duarte, San Dimas, Diamond Bar, Temple City, Rosemead, Alhambra, San Gabriel, Monrovia, Covina, West Covina, Irwindale, Pomona, Pico Rivera, La Mirada, La Habra, La Palma, Norwalk, Hacienda Weights, Bell, Bell Gardens, Cudahy, Huntington Park, Valencia real estate,  Inglewood, Lawndale, Artesia, Hawthorne, El Segundo, City of Industry, Commerce, Ontario, Norco, Corona, Guasti, and Rancho Cucamonga. You can also see ocean view, bay front properties in the beach communities of Balboa Island, Lido Island, Lido Isle, Linda Island, Linda Isle, Harbor Island, Newport Beach Peninsula, South Laguna, Emerald Bay, Sunset Beach, Surfside, Three Arch Bay, Monarch Beach, Capistrano Beach, Marina Del Rey, Playa Del Rey, Long Beach, Seal Beach, Sunset Beach, Manhattan Beach, Redondo Beach, Hermosa Beach real estate, Belmont Shores, San Pedro, Palos Verdes, Venice, Pacific Palisades, Malibu.