Where Homebuyers Obtain the Funds to Purchase a Home in the LBI NJ Real Estate Market on Long Beach Island New Jersey
The LBI NJ Real Estate Market on Long Beach Island New Jersey
The LBI real estate market has shown substantial activity even in the wake of Hurricane Sandy. While there was a drop off in market activity in the immediate aftermath of Hurricane Sandy, the LBI real estate market has returned to or exceeded the sales levels of 2012. Essential to Long Beach Island NJ real estate transactions are Financing Options in the LBI NJ Real Estate Market.
Financing Options in the LBI NJ Real Estate Market
There are a number of mortgages available to homebuyers however not all are applicable to the LBI real estate market. Primarily, there are three Financing Options in the LBI NJ Real Estate Market that are utilized by the majority of buyers on Long Beach Island. They are:
- Cash transactions on LBI including personal loans from family members, liquidation of stocks and assets or home equity loans on a primary residence.
- Conventional loans including 2nd home loans and investment loans
- Construction loans for renovation and new construction
Finding the right Financing Option in the LBI NJ Real Estate Market depends greatly on the intended purpose and the ability of the buyer.Cash transactions tend to be the “best” option as they often result in a lower sales price for the buyer due to the added security offed by the terms of the transaction. It is not uncommon for a seller to accept a cash transaction over an offer made with a mortgage contingency.
Conventional loans are the most common financing option on Long Beach Island. Most home buyers will seek a mortgage with a down payment of 20%-30%. Depending on what the intended use is, a buyer may seek either a 2nd home loan (if the intention is not to rent many weeks) or an investment loan if the intention is to aggressively rent the property.
Construction loans are an excellent option for those looking to build a new home on Long Beach island or looking to renovate an existing home. There are several types of construction loans available depending on the extent of the project. This form of financing has become popular with storm damaged homes from Hurricane Sandy.
It is important to realize that there are many other Financing Options in the LBI NJ Real Estate Market that are available in certain cases such as VA loans, FHA loans, etc however they have limited exposure on LBI as the majority of homes on Long Beach Island are not primary residencies.
Buying and Selling on Long Beach Island NJ
It is important to understand the different Financing Options in the LBI NJ Real Estate Market BEFORE starting your search on Long Beach Island. Buying a home on LBI is supposed to be a fun and exciting time and stretching your budget too far can create a negative experience. Regardless if you are paying cash or looking for a mortgage, it is advisable to speak to several lenders to understand the options available to you. For more information about buying and selling on Long Beach Island NJ as well as the different Financing Options in the LBI NJ Real Estate Market please contact me, Nathan Colmer, and I will be happy to help!
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | email@example.com