What 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 space.  These 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 communities. 

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, Haight-Ashbury
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 Financing Specialists: