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I purchased a condo last year and have about 19% equity in the home now (188k remaining, 230K evaluation).
The challenge I'm running into is that a parking spot recently opened up for sale in my condo complex, and I'm trying to find a way to finance it. All of the lenders I've spoken to will not issue a HELOC, because my loan-to-value ration will be greater than 80%.
What loan options are available? Does anyone know of any particular banks that have experience with this type of loan? I've reached out to several banks with no success. The parking spot is in Jersey City near the Grove PATH station.
I agree with jdhall1. Is this parking spot going to provide some type of equity to a lender? If not, the best method may be to save what you can and pay cash.
Have you asked the owner for some type of financing deal? There are numerous methods to acquire what you are wanting, just think outside the box. A bank is my last step when looking for financing.
How much is the parking spot? If you have good credit, you should be able to get a signature loan, or even charge the cost to your credit card.
You might be able to get a bare land loan (Super expensive interest, high down payment required) or a commercial loan (not available for small amounts)
Have you asked if the seller will carry paper on it?
A condo with a parking spot is worth more (sometimes much more) than one without. You could try to point out that the loan/ value ratio for the two together will be less than 80%. Don't know if this will work, but it DOES make sense.
A condo with a parking spot is worth more (sometimes much more) than one without. You could try to point out that the loan/ value ratio for the two together will be less than 80%. Don't know if this will work, but it DOES make sense.
This may be your best bet, unless you can get the parking space owner to finance the purchase (perhaps a 5-year note at 5-6%?)... OR, perhaps you could lease the spot from him, until you were able to arrange financing.
To get a loan, you will need to validate your claim of increased valuation to achieve the 80% loan/value ratio. You might be able to do this through sale 'comps' that included a parking spot; or separate parking spot 'comps' - You can get the former on your County Tax Appraiser's web site, but, may need to get the latter directly from neighbors who have bought/sold parking spaces.
(The problem with separating the parking space loan from your primary property loan is that the parking space has little/no 'stand-alone/collateral' value, except to other owners in your condo.
Thanks for all of the suggestions! Great feedback, I have a lot of options to further explore.
The parking spot is $25K and it's in a heavy residential area, where people routinely pay $150-175 / month for parking. I asked the seller for financing options, but unfortunately they don't have anything to offer me. I have good credit (760).
I'll look into the options offered up and let you all know what works out! Thanks for the help!
Here are ideas to get a little here and a little there. How much is your car worth? Sell it and put a small down payment on a new car. There are balance transfers from credit cards. FHA loans. Depending on when your taxes are due, you can get a loan and build your taxes into it and get a refund on your previous escrow if you have one.
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