Although Laguna Woods Village is one of the most affordable senior communities in Southern California, there are financial requirements for purchasing here. For a Stock Cooperative, or Co-op, you need $125,000 in liquid, marketable, or income producing assets above the purchase price of a home and $36,000 per year in income. To purchase a Condo, you need $125,000 in assets above the purchase price and $42,000 per year in income. “Assets” can include equity in your current home or an investment? property, 401 k, IRA, stocks, bonds, or a mixture of any of these asset classes.
As an example, if you wanted to buy a home for $150,000, you would need to show total assets of $150,000 + $125,000 = $275,000.
Currently, there is no “exemption” for meeting these financial requirements. BUT, if you make a big enough yearly income, you might need less assets to purchase a home. Conversely, if you have a high amount of assets but do not meet the yearly income requirement, some of your assets may be counted as income…
Another method for satisfying the financial requirements is for a family member to ”go on title” 1% so their finances can help meet the financial requirements for purchase. Please note that in using this method, the assisting family member will have no liability towards paying the mortage on the home (if any), but may be liable for paying the HOA dues on the property if the primary party falls behind in such payments. In other words, the whole goal in having the financial requirements for purchase is, the association only cares if the HOA dues are paid each month.
I don’t know if these financial requirements help in making the City of Laguna Woods one of the “Top 10 Safest Cities in the Nation”, which it is, but it sure can’t hurt!
Please see my web site if you have any further questions or would like more information about the active senior community of Laguna Woods Village, formerly Leisure World, at: www.leisureworldre.com