All Forum Posts by: Jeremy Williams

I can't speak to your area as I'm licensed in California (we do have teams in IL though) but you most likely have first time home buyer programs available in your state as well.  Some may offer assistance and lower costs.

FHA can work but if it's your primary residence and you're a first time buyer you can do 3% down conventional if you qualify. Mortgage insurance on the loan will drop off later when you build equity while an FHA loan will never drop it unless you refinance into another loan product. If your credit is over a 680 you will typically have lower mortgage insurance costs going conventional.

With all that being said, speak to a local lender.  They should be able to get you on a game plan.

Unless your banker practices law you should also speak with someone in that profession as well. They can give you a lot more information on what protections you may receive by doing this and also what not to do so you'll keep those protections intact.  Simply signing up may not protect you without understanding the details.

If you're ok going with a non-local bank I just used Third Federal (no affiliation to my company). Prime -1.01 on the rate and they were pretty quick 5-6 weeks from start to finish and receipt of checks.

 If you do all your research and speak with others who own smaller complexes I don't believe you're being too aggressive.  You get into commercial finance going 5+ which can be quite a bit more costly upfront though so you may want to start there to see if it's feasible unless you're already past that point.

Yup, smartmove is what I use as well.  Can charge the client directly if you don't want to pay upfront yourself.

Your biggest qualifiers for going with a conventional loan will be:

• The dwelling unit is built on a permanent chassis and attached to a permanent foundation system
• The manufactured home and the land on which it is situated must be title as real property
• The home should have a HUD Data Plate and the HUD Certification Label (tag)

Any idea on those?

Jeremy Williams, Lender in CA (#1294461/1850)

Typically these aren't allowed on standard loan products.  Seller contributions can go towards closing costs, setting up impound accounts, buying the interest rate down, paying for mortgage insurance upfront so you avoid the monthly cost, etc.  

Down payments are usually required to come from your own funds or a gift but check with your local lender.  

What type of loan are you looking at getting?

Yup, typically if its highest and best use is residential then residential financing isn't hard to obtain for a commercially zoned property.

To the question of developing on the land, which sounds like it's on the same parcel as your building, that would depend on your cities planning and codes. What % of the parcel can be built on, what does C3 allow to be built, etc.  Here in Sacramento you just walk in the planning department, take a number and ask someone.  They usually point you in the general correct direction.  Not sure if your city will have something similar.

@Russell Brazil for a new build or remodel/conversion?  

I've looked into this online but the city won't notate what's needed until an take-in sheet is submitted which requires a bit of work that I'll have to hire out for.  I'm fine doing this but would like to ballpark it to see if it's feasible before spending even more money.  Also, some departments have to be reached out to individually for fee information.

Hello,

Longer version

I'm doing some research on a property zoned general commercial (C2) in Sacramento, CA.  It's been used as residential since 2003 and the last permit pulled according to the city was for residential sewer replacement.  

The idea: I'll be converting/doing a commercial remodel to turn this place into a barbershop. There's a separate upstairs unit with it's own entrance that will remain residential. Planning says this is allowed but it will come down to building with requirements.  When I spoke to building they threw a ton of info at me which all makes sense (fire barrier requirements, etc). On to the unknown...

The possible issue: I'm comfortable with permit costs and calculating those.  I know these won't get out of hand but have no clue what impact fees might cost me.  I know new construction can be expensive but existing structures? I'm guessing they'll look at sewer, parking, traffic, environmental maybe? Anyone have any insight/estimate on the cost on this?  $5,000-10,000 wouldn't be a deal killer but if I start to get over $15,000-20,000 that could definitely hurt

TLDR: version is I'm buying a property zoned commercial with current residential use, property will be remodeled commercial, change of use will be filed and I have no idea what impact fees will be.