Even though individual owners should be prepared for the full amount at once, the UMCA could research options for the association to purchase the land. It would be complicated if owners owned 1/48th of the land. Susan Buch said that Aaron or David would be the ones to contact at ISBT regarding the purchase of the land by a business entity, namely the UMCA.
It would thus be very inexpensive for us to purchase the land. A 150,000 mortgage at 8% (conservative) would mean a monthly payment of $1052.95 which divided by 48 owners, would mean $21.94 per month. That is less than $1 per day, to become full owners.
Here are the monthly payments per owner, assuming 8%, for paying the mortgage off in so many years
30 years - $20.89 per month
15 years - $21.94
5 years - $33.02 (about $1 per day)
1 year - $115.28
Susan Buch indicated that a 5 year mortage was reasonable. But for an organization, they would probably not want a 30 year mortgage, even though individuals commonly purchase homes on 30 year mortgages. Still there is not much difference anyway per month, as you can see above, while paying the land mortgage off in 5 years.
Local banks are receptive to helping owners on a case by case basis
Hi Rick.
This is Sue Buch calling, from Iowa State Bank.
And I'm just calling in regards to the
letter that you sent us wanting us to
finance the land acquisition.
And that would be on a case by case basis.
So, you know, what every land, er every condo owner
would need to come in and fill out an application
for their scenario and submit it to us for approval.
And again it is on a case by case situation.
So, give me a call if you have any questions.
Bye.
