FINDING THE RIGHT LENDER IS ESSENTIAL
When searching for the right lender it is essential that you work with an experienced broker who knows the ins and outs of loft financing. Here are 2 very good reasons why: 1. Loft financing may be considered as non-traditional financing by most lenders and credit unions.
Having a homeowners association does not make a loft equal to a condominium in the eyes of most lenders. Lenders have guidelines that consider factors like, zoning, type of occupancy, type of construction, and type of building. 2. Understanding CRA can save you money.
Many lofts are located in CRA designated areas. Banks are required by the federal government to provide a required amount of loans in these assessment areas. In order to compete for these loans, some banks will offer below-market rates or even pay the closing costs on the loans. 3. Know the difference between buildings.
You need somebody that is familiar with the area, in this economy, there are many factors to consider:
- Which buildings will qualify for FHA
- What buildings have lawsuits, making financing more complicated and even impossible.
- Which banks have successfully closed deals on hard to finance buildings
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