Tuesday, August 16, 2005

Marin bank first to lend to individual owners in TICs - SF Chronicle

Tuesday's Chronicle announced the first offering of Individual TICs by Marin Bank. The most important paragraphs, detailing the specifics of who can benefit from the loan, are here:

"Bank of Marin decided to test the market because its customers asked for it.

Like other banks, it has been making loans to real estate investors and developers who buy apartment buildings, fix them up and convert them to TIC ownership.

Under its new program, it will make a limited number of fractional- interest loans to individuals who buy units from developers who got their acquisition/renovation financing from Bank of Marin. Its initial $20 million loan commitment includes acquisition/renovation loans as well as the new fractional-interest loans. All of the new loans already have been spoken for.

The fractional-interest loans are expected to be for about $300,000 to $400,000 each, says Bank of Marin's Keith Zimmerman. "We will close on the first ones in three to four weeks," he adds.

The loans will be structured like commercial real estate loans. They will be amortized over 30 years, but the balance will be due in 10 years. The interest rate will be 7 percent fixed for the first five years and will adjust once after five years. The average rate on a conventional 30-year, fixed-rate home mortgage is around 5.9 percent nationwide.

If the new loans perform well over the next three to four months, Bank of Marin will consider making more, Zimmerman says."

To read the entire article, click here.

Have more questions about trends in the housing market? Questions about selling or buying a home? Contact me today for honest, experienced answers. Amy Blakeley, Realtor® ~ ablakeley at mcguire.com ~ (415) 296-2173 Direct

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