Hopefully by now you have taken advantage of the recent amazing, unexpected and historically low mortgage rates.  If not, stop reading and call me now!  916-947-4587.

OK, now that you have a lower mortgage payment, you may be considering an investment property or a vacation home to purchase.  Be informed upfront as you enter these waters and consult your CPA to determine any unforeseen tax consequences.

Real Estate Never Sleeps!  Mortgage payments, taxes, HOA dues, insurance, vacancies, water/sewer/garbage, utilities, yard care, and repairs can add up.   Are you a handy do-it- yourselfer?  Do you have the time to self-manage or will you require professional property management?  These are questions you need to ask yourself and answer HONESTLY or it can cost you in the long run.

Single Family Home or Multi-Family.  Residential financing is available for 1-4 units.  Lending is based upon the property condition and loan-to-value as well as the borrower’s credit, reserves, and ability to repay mortgage(s), taxes, insurance as well as any other recurring debts.  The rates for these loans can be long term fixed.  Commercial financing is a little different for multi-family properties with 5 or more units.   Since it is considered commercial in nature, the transaction is underwritten as a business.  The lendable amount is determined by the amount of income the property produces minus expenses.  Expenses can include; new mortgage payment, property taxes, insurance, repairs, and management fees.  Loan terms are typically short term and have a declining pre-payment penalty.  The appraisal is an integral part of multi-family transactions and can cost thousands of dollars due to the complexity of the report.

Location, Location, Location.  Residences near universities/schools, Hospitals, job growth centers, transportation, and restaurants all have desirable amenities.   My best advice is to as always refer these questions to your knowledgeable and favorite real estate agent Michael Glascock.

Creative Financing…Yes, I have the experience and ability!  Sometimes the “box” isn’t for everyone…there are many ways to structure financing for a real estate deal and I can help.

Danny Ponder | Loan Officer
NMLS# 230269
1420 Rocky Ridge Road Suite 250
Roseville, CA 95661
C: (916) 947-4587
O: (877) 441-2265
F: 844-410-4646
Danny.Ponder@BancHomeLoans.com

Google+