May 11, 2008
Apparently You Can Still Get a 95% LTV Mortgage in San Francisco
The new development at Esprit Park in the Central Waterfront district is getting even more aggressive to bring in buyers with a new financing offering requiring only 5% down. After announcing a price guarantee back in November and “new” pricing (i.e. reduced) in April, taking on the credit crunch with high LTV financing is the latest plan to sell the remaining 110 units. Approximately 32 units have been sold since sales began way back in September. I love this quote on the marketing piece:
“With over 32 homes already sold, take advantage now of this incredible offering from Patelco Credit Union and join our growing community of happy homeowners at Homes on Esprit Park.”
Of course, you have to dig pretty deep on the website to find out there are 142 total units, which makes for a whopping 23% sold in almost 8 months! Not exactly flying off the shelves are they….
According to Patelco Credit Union, the lending “partner” offering this financing, the following terms and restrictions apply:
- $850,000 maximum loan amount
- Escrow for property taxes required
- No more than 35% of total complex to be financed by Patelco
- 700 minimum FICO
- No delinquencies in past 24 months (no mortgage delinquencies ever)
- 42% maximum DTI
- Owner occupancy required
- 5% down payment cannot be gifted
- 2 months PITI reserves
If I was in the market for a tastefully done property in an area that still needs more gentrification, but is in a direct path of future progress extending from the new Mission Bay area, I would consider this development. And I like to have as little skin in the game as possible, and this new financing offering allows for that.
Janis Mara said:
I first noticed your headline this morning and now that I’ve read the article, I’m still amazed. Admittedly, these guys are protecting themselves with pretty stringent restrictions, but offering a 95 percent loan-to-value seems like a restaurant boasting of its low-carb meals. Everybody has been there and done that, no?
May 13, 2008 12:58 AM
Anna said:
It does seem like a pre-trouble offer, but then it probably wouldn’t have been offered if not for the current market problems.
I’ve taken a peek at these. Really nice and that location is only going to get better.
May 13, 2008 10:48 AM
david g said:
Well at less than 1/4 sold in almost 8 months, they need to do something. These apparently are very nice homes in up-and-coming area in the direct path of progress - I keep meaning to get over and check them out!
Cheers ladies.
May 14, 2008 1:22 AM
Pwhndvve said:
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August 9, 2008 9:42 AM