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Friday, March 23, 2012

Home Buyer Tips - sometimes cash is the only option

Many, if not most, buyers obtain a mortgage when purchasing something major such as a house or condo although some pay cash. 

Of the 1,238 residential and condo closings in Brevard county during the first two months of 2012,  just slightly more than 56% were cash transactions.

My guess is many of the cash transactions were necessary because cash was very likely the only option available (unless a seller-held mortgage is possible).

A couple of examples where cash only may be required could include
  • Investor target properties where “cash only” situations exist due to things like the condition of the property.  If windows are broken, walls damaged, roof leaks, and the like exist then financing is out of the question for most lenders.  I am not a mortgage expert but there are some loans available where repair funds can be placed in escrow at closing but these are not for major rehab projects.  For information on loans, contact a qualified lender.
  • Or it may be a case where the condo community has not been certified by HUD/ FHA because of things like more than half the units are occupied by renters.  FHA wants to make sure loans on condos go where the units are primarily the owner’s primary residence. And even if the more than half of the condos are owner occupied if there are more than 15% of the owners behind in association dues financing is not an option.
As you shop for a home or condo identify properties that fit your financial resources and options.

If you are considering buying or selling a house or condo in Brevard County, Florida,  I would welcome a chance to work with you!

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