Financing Your New Orleans Condo
Best to Use a Local Lender
Local Experience Pays Off
1. Local Lenders know the New Orleans Condo market. The can quickly get the condo questionnaire filled out and reviewed. The lenders that I use have had many experiences and loans with the various condo associations. There offices and back offices are local. This makes the work easier and quicker.
2. Second Home Buyers are required to put down 20% as a down payment. Residents can put down 20% and avoid insurance fees. Rates for residents will be slightly lower.
3. Doctor's Loans are available from several local sources. You can get a loan as a resident or on a fellowship. The rates and fees are low. These will be balloon notes meaning you have to any them off in 5, 7, 10 years. The rates and fees are very low.
4. Interest Rates will be locked in for so many days. You will need to ask the lender how long the quoted rate will last. It is up to the buyer to say "lock me into the rate".
5. Standard Mortgage who I often us generally holds and services the mortgages rather than selling them. This is a plus for the buyer.
6. Taxes are escrowed by the lender in most cases. They will collect 1/12 of the yearly taxes monthly so they can pay them off when the taxes are due. In Orleans Parish the taxes are collected at the beginning of the year. You pay ahead.
7. Appraisals have never been a big issue in this market. 100% of my condo sales have been appraised over the past 12 years. This is with about 150 sales.
8. Very few New Orleans Condos can go FHA. The condo associations have to be on the FHA list and most condo associations do not want to worry with all the paperwork, rules and regulations.
9. The Local Title Companies do loans with the local banks and lenders on a weekly basis so they have a great working relationship. All Title companies are local. Having a good team makes the process go so much smoother.
10. The Listing agents know the local lenders come through and work faster than most out of town lenders. That means it is easier to accept a local lender. Having a pre-approval letter from a local really helps. We know there will be less issues and delays.