Looking to get a loan on a paid off property in La Jolla CA

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Looking to get a loan on a paid off property in La Jolla CA

Huggy Ford
Rental Property Investor · Simi Valley Cali · Member since 2022 · 49 posts · 9 votes

We were going to sell our La Jolla property, but a land lease is making things harder. Now we're going to rent the unit instead. It's paid off and we would like to get a little liquid. The land lease is now at 29 years. The property at 9737 Keeneland Row La Jolla Ca. Ideas appreciated 

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Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
3y

@Huggy Ford- thanks  1)  try  contacting the smaller to mis size credit unions and banks in the La Jolla  area  for  options  2)  do some research on other nearby properties that  are in the same  situation to  see if you can  find  recent lenders that  have made loans to these properties  3) if you still live in the  property  definitely try to  complete this  task BEFORE  you move out of the  property as  getting a  primary residence loan  will be  much  easier than  getting a loan on it when its an investment property .

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  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Huggy Ford- thanks  1)  try  contacting the smaller to mis size credit unions and banks in the La Jolla  area  for  options  2)  do some research on other nearby properties that  are in the same  situation to  see if you can  find  recent lenders that  have made loans to these properties  3) if you still live in the  property  definitely try to  complete this  task BEFORE  you move out of the  property as  getting a  primary residence loan  will be  much  easier than  getting a loan on it when its an investment property .

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  • Huggy Ford
    OP
    Rental Property Investor · Simi Valley Cali · Member since 2022 · 49 posts · 9 votes
    3y

    Thank you Dave, Since our son moved about a year ago we just updated the condo and the put it up for sale right after that the market took a hit. We're now going to rent it for income. All of our other investments are paid off and we will not be able to get a w2 loan. So, looking at other alternatives to create liquidity through our Properties. Checking the David Greene One Team on Wed. 

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  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Huggy Ford- thanks ..if the  property is still on the market - lenders  likely  wont  consider lending on it ...if its off the market - you might  have a  chance ..best of luck

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  • Huggy Ford
    OP
    Rental Property Investor · Simi Valley Cali · Member since 2022 · 49 posts · 9 votes
    3y

    Thank you for the info Dave. 

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  • Stephanie MedellinBusiness Member
    Mortgage Broker · CA · Member since 2014 · 1k+ posts · 644 votes
    3y

    It's possible to get a mortgage on properties on leased land, the lease just needs to meet the lender's guidelines. Typically they want to see a term at least 5 years longer than the mortgage term. For example a 20 year mortgage would require a lease with a minimum of 25 years remaining. Conventional loans as well as some DSCR programs allow land leases.

    A W2 job is not required to qualify for conventional financing, only steady income that can be documented.  People have income from many different sources - investments, pensions, trusts, rental income, etc.  If you show enough rental income after expenses on your tax returns, you could (in theory) qualify on that alone.

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    Stephanie Medellin, Loan Factory58 Reviews
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