Can I Afford?
Read mortgage and financing FAQs here.
FINANCING YOUR LOFT OR LIVE/WORK LOFT
With increasing demand for housing in urban cities, commercial structures
have been converted into residential housing or live-work living
commercial structures – once being factories, mills, and warehouses – are
often in industrial or commercial zoning. What was once considered
unusable property has now become a sought-after niche market.
Though a loft may have a Home Owners Association similar to a condominium,
it may be considered non-traditional by most lenders and credit unions. Lenders
have many other guidelines to housing that lenders consider, such as
Zoning, Occupancy (Work-Live), New Construction, and High Rise Buildings.
Just crossing the street might save you thousands!
What is CRA and how may it affect you and your new home mortgage?
CRA or Community Reinvestment Act was started by Congress in
1977. It established a federal regulatory agency which examines
banks records to make sure they meet the credit needs of the local
CRA has required banks to designate geographic assessment areas. The
banks must establish a record of providing products and services to
meet the needs of moderate income neighborhoods.
What does this mean to you?
Many new condominium projects and lofts buildings are being
developed in “up and coming” areas. If these areas
in past census reports had been recognized as a place with a population
of moderate income residents, then you may have struck gold!
Many banks are eager to fund loans in these designated areas in order
to comply with the government. In order to compete for these loans,
some banks will offer below market rates or even pay the closing costs
on the loans.
Some areas of the areas that have qualified for this financing include:
San Francisco: SOMA, Potrero Hill, Mission, Bernal Heights,
East Bay: Oakland, Emeryville
To find out more about this program, or check to see if an address
of a property is in an assessment area, please contact your Urban Bay