REAL ESTATE RECOVERY - San Fernando Valley (Los Angeles County)
While the condo market in Los Angeles County is still considered a distressed market, buyers in the valley can still purchase great condos with only 3% down and a 3.5% credit for closing costs.
One of the hardest hit markets in Los Angeles & Ventura counties is the condo market. Nowadays, condo financing is extremely challenging because so many condo complexes are simply not eligible for any kind of financing, - PERIOD!!! For buyers in the lower end of the market here, buying a condo is nearly impossible.
As a result, many condo sales are strictly all-cash investors looking for rental income, which makes any future financed sales even more remote and less likely than ever before. The biggest issue with getting condo financing is that a) the owner occupancy rates are too low, b) the HOA has little to no cash reserves and is operating at a loss and c) there is pending litigation on the complex or the HOA. All of which are issues that are dealbreakers for most lenders.
Right now, Fannie Mae REO's, which are called HomePath (HP) properties, are properties that were foreclosed by a lender where Fannie Mae was the investor.
Because Fannie Mae holds these liens, they can revise their own conventional guidelines in order to move these properties out of their inventory. As a result, there are some great benefits to purchasing one of these properties.
The HP condo guidelines aren't as stringent as most other loan programs (there are still some basic condo requirements) and HP properties do not require HOA certifications so these type of issues don't have to derail the transaction. The HP loan program also doesn't require monthly mortgage insurance (MI) or an appraisal. The benefits of no appraisal or MI can eliminate some of the biggest challenges that can come up in an escrow transaction. With hundreds of HP properties available here in Los Angeles & Ventura counties and dozens more coming up soon, these may be the only available condo that are eligible for any kind of financing.
One of the best benefits is that HP only requires 3% down payment, which basically allows Fannie Mae to compete with FHA loan products. The HP down payment can also be from either the borrower's own funds or a gift from a relative. Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance on HomePath (HP) properties that close escrow on or before October 31, 2011.
Here in Los Angeles & Ventura counties, there are literally hundreds of HP condos available that would be perfect for the first time buyer who wants to stop throwing their money away on rent and stop paying their landlords mortgage. For eample, there are two units here in Tarzana in the San Fernando Valley is just blocks from Ventura Blvd. and all the shopping, restaurants and entertainment on the Blvd.
Both of these units have nearly 1,000 sq. ft. of living space and one has been nicely rehabbed. This gated community offers residents a pool & spa as well as a recreation room.
Right now, comparable rentals in this neighborhood are running approx. $1,500-$1,800 a month. For less than $1,700 a month (PITI+HOA), you could own one of these homes. For more info on the HP program and how you can qualify to purchase this home, contact me, Donne Knudsen of C2 Financial Corp, at 805.2069123 or donne4loans@earthlink.net.
Today's real estate market and lending environment can be really scary, which is why it's important to get as much information as possible before starting your search. Finding out more about affordable home loan options and getting pre-approved is an absolute must. The home buying process is not a simple process and it's because it can get really complicated and convoluted that borrowers today need affordable loan options that are best suited for their own needs.
