Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer

Non-Traditional LBI Loans

Nathan Colmer | Van Dyk Group

C: 609.290.4293 | O: 609.492.1511

Non-Traditional LBI Loans

While there are some excellent opportunities to purchase a home in the LBI real estate market, it is important to make sure you can comfortably afford the home purchase. Depending on the intended use of the home, there are some creative solutions to buying a home in the LBI real estate market and alternative financing strategies on Long Beach Island. Some of these can result in an easier process and a more affordable carrying costs for your second home or investment property.



Non-Traditional LBI Loans | LBI NJ Real Estate

Creaitive Fiancing Options in the LBI Real Estate Market




Non-Traditional LBI Loans | LBI NJ Real Estate

It is important to understand that there are many options available to a qualified buyer looking for a second home in the LBI real estate market. It is best to speak with several local lenders to understand the shore real estate market and see what options work best. It is equally possible to speak with your accountant or financial planner to see what your best strategy will be. Alternative financing solutions in the LBI real estate market can save you time and money under the proper application. For more information about buying a home on Long Beach Island, CONTACT ME and I will respond right away.


Non-Traditional LBI Loans | LBI NJ Real Estate

Alternative Financing Strategies on Long Beach Island

There are a number of alternative strategies for financing a home in the LBI real estate market. For example:

  • Seller Financing
  • Second Mortgage on the Primary Residence
  • Interest Only Mortgage
  • Private Mortgage

Seller financing is a rather straightforward process by which a seller, assuming they do not have a mortgage themselves, may allow transfer of the property to the buyer for only a down payment and a monthly payment for a short period of time. This can be particularly useful for someone looking to build a new home. Since construction loans can be difficult to obtain, a seller may allow a short-term mortgage, for one or two years, so the buyer can utilize a supply of cash to build a new home. Once the new home is complete, it can be refinanced and the seller can be paid off in full. This can have many advantages as the loan will be less expensive for the buyer, and the seller will obtain more money in the long term through interest payments.

A second home on a primary residence is another effective way to obtain financing in the LBI real estate market. The primary home is paid in part of in full, it may be possible to draw on the equity in the home to use as payment for a home on Long Beach Island. While this process does further encumber the primary residence, in most cases the home on Long Beach Island will have no mortgage and the overall debt structure of the individual will be the same. This can allow for an all cash offer to be made which can additionally save money in a negotiation.

Interest only loans gained negative press during the financial downturns, however they do have an effective place in a second home market. I do not recommend using an interest only mortgage as the sole source of financing, however they can be very effective in a speculative real estate investment. If individual is purchasing a property with the intention to build a new home and sell in the short-term, and interest only loan can limit the amount of out-of-pocket financing costs and make the project more profitable.

A private mortgage, which is very similar to seller financing, is an effective tool for new construction. By borrowing money from an individual with the intention of building a new home and subsequently refinancing the new home, the overall loan process and costs should be lower.




Real Estate Note

Keep in mind that I, Nathan Colmer, am a real estate agent and not a lender. Therefore the information I am providing regarding mortgages is intended to be a general set of guidelines. Your individual situation, including the loan type, interest rate, etc that you qualify for will depend on your individual situation. I am happy to connect you with some lender that I have strong working relationships with to give you more specific and customized information.


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Your LBI Beach House is a Phone Call Away! Call Nathan Colmer 609-290-4293

Nathan Colmer



The Van Dyk Group

12800 Long Beach Blvd

Beach Haven Terrace NJ 08008