California’s mortgage market is still alive and well
“California is much more competitive than any other market I have seen in the entire country,” said Ben Stoodley, loan originator at Lantzman Lending. With more investors and “deals to be had,” it has led to more competition in the market. Just over the last year, Lantzman Lending has seen several new companies come into the lending market, driving the costs down and forcing companies to be become more flexible.
With such a “hot” market, there are bound to be a few challenges. One of which is the lack of inventory. Throughout Southern and Northern California, the market is still burning hot, with high price points across the board. “A lot of investors have saturated the market, causing a bidding war for many of these deals, in which case the margins get eaten up very quickly for the investors,” said Stoodley. Because the margins are thinner, the loan to value (LTV) ratio is pushed down on the purchase side. Amid purchase prices rising, in some cases, investors are now receiving less money towards their purchase, which can be “bit of an issue.”
Lantzman Lending is a direct private moneylender that provides financing through loans secured by non-owner occupied residential, commercial, industrial, and multi-family residential real estate in California, Nevada, Arizona and Texas.
With such a “hot” market, there are bound to be a few challenges. One of which is the lack of inventory. Throughout Southern and Northern California, the market is still burning hot, with high price points across the board. “A lot of investors have saturated the market, causing a bidding war for many of these deals, in which case the margins get eaten up very quickly for the investors,” said Stoodley. Because the margins are thinner, the loan to value (LTV) ratio is pushed down on the purchase side. Amid purchase prices rising, in some cases, investors are now receiving less money towards their purchase, which can be “bit of an issue.”
Lantzman Lending is a direct private moneylender that provides financing through loans secured by non-owner occupied residential, commercial, industrial, and multi-family residential real estate in California, Nevada, Arizona and Texas.
