Home Buying in Newport Coast>Question Details

Henry, Both Buyer and Seller in 92592

Is it possible to buy in newport coast,ca with 10% down? How about owner financing?

Asked by Henry, 92592 Wed Sep 23, 2009

I am looking in the 1.5 to 1.7 million range in Newport coast. I can put together about 200,000 dollars for downpayment.Are there any loan programs out there? Is there room to negotiate with sellers on owner financing?...or taking over their loan?
I am also looking for a good local agent who is familiar with the newport coast area and has his/her finger on the pulse of the local market.

Help the community by answering this question:

Answers

8
Robert Chomentowski’s answer
If you wanted to do a straight 10% down loan with no seller financing, there is a loan available but you max purchase price would be $975,000. If you need to go 10% down higher than that, follow the great advice below.
0 votes Thank Flag Link Sat Sep 24, 2011
Henry, both Rudi and Luke are lenders. Both have stated that they don't have such a loan program in their portfolios.

The closest institutional loan I have heard of in your price range is to get a 75% first, meaning that the seller would need to carry more like 15%, than only 10%.

If you find such a seller, but can't locate a lender who can come up with the underlying first mortgage, you MAY have to get really creative, with something like an All Inclusive Trust Deed ( A.I.T.D.) or contract of sale. The owner remains on title, and you make payments to a holding company - usually an escrow like entity - and they make payment to the owner, taxes, and the lender.

There are some risk to both seller and buyer, but if done correctly, it can get you into the property and serve you well for 3 to 5 years, until you're more capable of getting a new 80% loan.

It's not a perfect scenario, but there are many of us "old-timers" who have done them over the years, and it IS a way around today's more restrictive lender guidelines. All you need are two good agents - one for each party - plus savvy holding and escrow companies.
Web Reference: http://SouthOC.info
0 votes Thank Flag Link Fri Sep 23, 2011
Henry,

If you take over someone's loan it will not be reported to the credit agencies and if you default the seller is still liable for the mortgage. I don't think that's going to happen.

I specialize in Portfolio Loans. This is the highest we can go on a Combined Loan to Value (CLTV) 740 FICO • 90% CLTV Seller Carry Back 80/10/10 up to $1,100,000. All lenders have restrictions on how high the CLTV can go and to what dollar amount. The only other option I have is with a 760 FICO • 80% LTV to $2,000,000.

If you wish to discuss this further, please contact me. You can also go to my website under Jumbo Loan
Programs to see our niche products and see our Featured Lenders Rates.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Fri Sep 23, 2011
Your best option is to speak to a loan professional. Feel free to contact Carrie Mandel with Tri Emerald Mortgage @ (949)297-1390 or carrie.mandel@triemerald.com

I am located in Newport Beach and know the area very well. Feel free to contact me if you are not already committed to another agent.
0 votes Thank Flag Link Fri Sep 23, 2011
Hi Henry,

Yes, I believe you can but you need the seller to participate in the financing. If you would like a lender referral, I have an excellent one. If you have good credit, I think the seller will only need to add 10% as seller-financing.

I work in Newport Beach and Newport Coast and would be happy to answer any questions you have about that area. What I'm seeing is more and more equity sellers coming onto the market...and this is exactly what you need. They can provide financing and are motivated to do so in your price range. The problem we need to overcome is that they might also want "top dollar" which we do not want to pay....so we will need to find the right situation...if you are in no hurry, then we can wait for the right combination of seller equity and price.

If you would like to speak more.....shoot me an email or call me anytime.

Karen
0 votes Thank Flag Link Wed Mar 23, 2011
Yes it's possible with 10% down. We'd structure it like this:

80% LTV Jumbo 1st mortgage up to $2M
10% Seller Financed 2nd
10% Deposit

Seller financing in Newport is very common, in fact it can help to close a deal a lot of times, because the seller gets to earn interest on the note they carry.

Let me know if you'd like to sit down and see if we can make this work.

Best Regards,

Steven @ MonumentFin.com
0 votes Thank Flag Link Sat Mar 19, 2011
Owner financing would be your best option.
0 votes Thank Flag Link Wed Dec 16, 2009
I can do it with 20% down but I highly doubt you will find a lender doing jumbo loans that large in Southern California who will do that loan with 10% down. Most of the other banks I know of only go to 75% LTV. I would either consider buying a home at $1 Million or trying to come up with an extra down payment. I know it is probably not what you would like to hear, but I just want to give you an honest answer.

If you have any questions, don't hesitate to contact me.
Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com
0 votes Thank Flag Link Wed Sep 23, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer