A buyer’s purchasing power is often diminished when looking at homes with Mello Roos taxes. Not only is their own personal budget strained, but many lenders will lower their Pre-Approvals on homes with higher taxes. You can avoid this problem.........
Sample Scenario
A home in Ladera Ranch or Talega may have an effective tax rate of 1.7% with the inclusion of Mello Roos. A similar home in Lake Forest may have a much lower 1.25% effective tax rate.
On a $400,000 house, this raises the buyer’s monthly tax payment from $417 to $567. That is an increase of $150 per month!
This can have a dramatic effect on the buyer’s qualifying limits with most lenders.
However, we work with investors who allow buyers to qualify on CA homes with a 1.25% tax rate, regardless of the actual taxes.
HOW YOU CAN USE THIS:
For those buyers who are tight on qualifying, don’t settle for lenders who qualify on the full tax rate. We can help you!
We have a buyer currently in escrow on a Ladera Ranch home purchase. He would NOT qualify if we had to use the actual tax amount for qualifying. The listing agent is shocked (and very thrilled) to hear we can use 1.25% for the tax rate instead of the actual amount.
Our goal is to help you sell more homes! If you have questions, feel free to contact us any time...we’re here to help!