Village Real Estate SpecialistPatrick McNameeEvergreen Realty,
- Posted in Commonly Asked Questions About Laguna Woods/General Information
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 $45,000 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 $200,000, you would need to show total assets of $200,000 + $125,000 = $325,000.
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 (son, daughter, sister, brother, son in law, etc.) to be a ”Guarantor” for you. In that case, for a coop, they would need to have an income of at least $90,000 and $250,000 in assets. The occupying parent must have an annual income of at least $24,000 and $75,000 in assets. For a condo, the “Guarantor” would need to have at least $80,000 in income and assets equal to $200,000 plus the purchase price of the home. The occupying parent must have at least $125,000 in assets. The whole goal in having the financial requirements for purchase is, the association wants to make sure you can live in the community comfortably. You are not “strapped” for cash!
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! It is nice to know your neighbors have met these requirements as well!
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