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.
