t has been well documented on this blog that one of the biggest challenges for the Rancho Santa Fe real estate market is lack of good jumbo loan options for buyers of Rancho Santa Fe homes for sale. Some sellers that have equity in their Rancho Santa Fe homes are now making their property more attractive to buyers by offering seller financing. Most know that the banks require strict, and often unreasonable, financing requirements for buyers of Rancho Santa Fe luxury homes.
The “hoops” that they are making borrowers jump through are sometimes staggering. As an example The Dalzell Group had a transaction this year where our buyer of a $3.2 million Rancho Pacifica estate got a small loan of $750,000 (or just 23% loan-to-value) and the bank required him to pay off two car loans totalling less than $200,000 before issuing the loan. From what we understand this is not an isolated example.
As a solution to this problem some owners of Rancho Santa Fe homes for sale have decided to become the bank! Given access to credit reports and some basic financial information, sellers can accurately assess the risk of a buyer that often has good credit and 20-30% downpayment but maybe doesn’t want to verify income to the levels that the banks expect.
For Rancho Santa Fe buyers who are having difficulty qualifying for a jumbo loan, The Dalzell Group can now partner with sellers to offer financing with attractive rates and terms.
Call Jim Dalzell at (858) 472-2840 for details about properties in Rancho Santa Fe that may be open to seller financing options.
