PURCHASE

HOA. An HOA fee is a regular fee that homeowners of a planned community or residential development must pay; it’s intended to cover the costs associated with maintaining the properties, shared amenities/services and common areas within the association.

Tax Rate. In California, lenders commonly use 1.25% as the estimated property tax rate when you initially get pre-approved. However, once you find the exact property that you like, it would be good to check that property’s tax rate – since it could end up being greater or less than the 1.25% benchmark. 

Mello-Roos. Mello-Roos is a special assessment that is charged to real property owners within a given district (Community Facilities District or CFD), which is in addition to the regular property taxes. The Mello-Roos assessment/fee is typically collected with your general property taxes, and will appear on your property tax bill. In 1978, the passage of Proposition 13 limited the ability of local governments to finance new public projects, and so, in 1982, the passage of the Mello-Roos Community Facilities Act provided local governments with an additional financing tool to pay for new projects. Mello-Roos is used to pay for specified public facilities and services such as street improvements, sewer & water improvements, park and recreation facilities, construction of schools, police and fire protection, and so on. If a property has Mello-Roos, your property tax bill could be greater than anticipated. 

Solar. Properties with solar panels may be financed, leased, or under a power purchase agreement (PPA). With a solar lease, you are making a fixed monthly payment to use the solar panels, as outlined in the lease agreement. With a PPA, you are making payments based on the energy produced by the energy system, at a fixed rate per kilowatt-hours. You’d want to review the solar documents to know what you could expect to pay if you decided to assume the solar agreement(s) when purchasing the home. 

Presented by: Jesse Haro – NMLS 2023964 | DRE 02134504