KanChan

KanChan Kan Chan is a licensed real estate agent in New Jersey, working in Keller Williams Elite Realtors in Metuchen.

Licensed Real Estate Salesperson with Keller Williams Elite Realtors. I specialize in First Time Home Buyers and Sellers. Fluent in English, Chinese Mandarin and Cantonese.

01/25/2026

Are 55+ Communities Legal in New Jersey?

Yes, 55+ communities are legal in New Jersey. These communities are allowed under the federal Housing for Older Persons Act (HOPA), which permits age-restricted housing as long as at least 80% of occupied units have one resident who is 55 or older. Communities must also follow policies that show their intent to serve older adults and verify residents' ages regularly. New Jersey state law aligns with these federal rules, making 55+ communities a legal and common housing option across the state.

However, a major legal update in July 2024 clarified that while communities can restrict who lives in the homes, they cannot restrict who owns them. The New Jersey Appellate Division ruled that requiring property owners to be 55 or older violates both the federal Fair Housing Act and the New Jersey Law Against Discrimination.

01/23/2026

selling a house with tenants in NJ

Follow Local & State Laws

Rent Control: Cities like Jersey City, New Brunswick, and Atlantic City have rent control ordinances, affecting eviction grounds and required notices.

Property Registration: Some cities (like New Brunswick) require property registration, impacting sales.

Prepare for Sale

Disclose Leases: Provide all lease agreements to potential buyers.

Property Condition: Make repairs (high ROI ones) and prep for showings while respecting tenant privacy.

Title & Inspections: Get a preliminary title report and ensure all final permits/inspections are closed.

Handle Security Deposits

The seller must provide the tenant's security deposit to the new owner, and the new owner must then know how to return it to the tenant.

01/21/2026

selling a house with tenants in NJ

Communicate with Your Tenant

Be Open: Inform them early about the sale and potential plans.

Offer Incentives: Consider a lease buyout or rent reduction to encourage them to leave, easing the sale process.

01/20/2026

selling a house with tenants in NJ

Know the "Owner-Occupied" Exception (for 1-3 Unit Buildings)
If the property has 3 or fewer units and the buyer intends to live in the unit, you can terminate the tenancy for the sale to close, but you must:
Give at least two full calendar months' notice to vacate.
Ensure the sale contract requires the unit to be vacant at closing.

01/19/2026

selling a house with tenants in NJ

Understand Lease vs. Month-to-Month Tenancy

Lease in Place: The new owner must honor the existing lease terms and rules; the tenant usually stays until the lease ends.

Month-to-Month: You need to provide proper written notice (e.g., 60 days for sale termination), but it can't end before the lease term (if any) expires.

01/18/2026

Before selling a house with tenants in NJ, a landlord must respect existing leases, provide proper written notice (often 60+ days for sale-related terminations, or according to lease terms), and potentially offer a buyout, especially if the buyer wants to occupy the unit; local laws (like in Jersey City or New Brunswick) add rent control or registration rules, and all disclosures are key, but you can't evict solely for selling unless it's an owner-occupied 1-3 unit building where the buyer plans to live, requiring specific notice and sale contract clauses.

11/13/2025

A bridge loan in real estate is a short-term financing option designed to "bridge the gap" between the purchase of a new property and the sale of an existing one. It allows a homeowner to access the equity in their current home to use for a down payment or an all-cash offer on a new house before their current home has sold.

Key Characteristics
Short Term: Bridge loans typically have a duration of 6 to 12 months, and rarely more than three years. They are not intended as permanent financing solutions.
Secured Loan: The loan is secured by the equity in the borrower's existing home, the new property, or both.
Faster Funding: The approval and funding process for a bridge loan is often faster than for a conventional mortgage, sometimes in as little as a few days to two weeks.
Higher Costs: Due to their short-term nature and increased risk to the lender, bridge loans typically come with higher interest rates and fees (such as origination and appraisal fees) than traditional mortgages.
Repayment Structure: Borrowers often make interest-only payments during the loan term, with the full principal (a balloon payment) due at the end of the term, usually when the existing home is sold.
Qualification: Lenders typically require a minimum of 20% equity in the current home, a good credit score, and a low debt-to-income (DTI) ratio, as the borrower may temporarily be carrying two mortgages.

When to Use a Bridge Loan
A bridge loan is a suitable option in specific situations, such as:
Buying in a competitive market: A bridge loan allows a buyer to make an offer without a sale contingency, which can make their offer more attractive to sellers.
Timing conflicts: The closing date for a new home might occur before the closing date for the current home.
Relocation: A sudden job change or other time-sensitive transition that requires a quick move.
Property investment/flipping: Investors use bridge loans to quickly purchase, renovate, and sell a property, using the sale proceeds to repay the loan.

Alternatives
Alternatives to a bridge loan include a home equity line of credit (HELOC), a home equity loan, a personal loan, or a "piggyback" 80-10-10 loan.

11/11/2025

To buy a new house with no extra cash while owning a lower-value home, you can leverage the equity in your current home or explore low/no-down-payment loan programs for the new property.

1. Using Your Current Home's Equity
You can access the equity in your current home to use as a down payment on the new one. The most common methods are:
Home Equity Line of Credit (HELOC): This works like a revolving line of credit, allowing you to borrow funds as needed up to a set limit. It provides flexibility if you're unsure of the exact amount you'll need for the down payment and other upfront costs. Interest rates are often variable, and during the initial "draw period" you may only be required to pay interest.
Home Equity Loan: You receive a lump sum of cash upfront with a fixed interest rate and fixed monthly payments over a set term. This is suitable if you know exactly how much money you need for the new home's down payment.
Cash-out Refinance: This involves replacing your current mortgage with a new, larger one. You receive the difference between the new loan amount and your existing mortgage balance in cash. This may offer a lower interest rate than a home equity loan or HELOC, but it resets your mortgage term and you will have new closing costs.
Important Considerations:
Risk of Foreclosure: Your primary home serves as collateral for a home equity loan or HELOC. Failing to make payments on these loans puts your home at risk of foreclosure.
Managing Multiple Payments: With a HELOC or home equity loan, you will have the new loan payment on top of your existing primary mortgage and the new mortgage on the second property (if you are keeping the first home). Lenders will assess your debt-to-income (DTI) ratio to ensure you can afford all payments.
Consult a Professional: Speak with a mortgage lender and a tax advisor to understand the full financial implications, including potential tax deductions for interest payments, before proceeding.

2. Alternative Low/No-Down-Payment Options
If you plan to sell your current home, or if using its equity is not feasible, other loan programs exist, though most are for a primary residence:
VA Loans: If you are an eligible veteran, active-duty service member, or qualifying spouse, you may qualify for a zero-down-payment VA loan for your next primary residence.
USDA Loans: For properties in eligible rural or some suburban areas, USDA loans offer 100% financing (no down payment) for eligible low-to-moderate income borrowers.
Conventional Low-Down-Payment Loans: Some conventional loan programs, like Fannie Mae's HomeReady or Freddie Mac's Home Possible, allow for down payments as low as 3% for qualifying buyers, especially first-time homebuyers.
Down Payment Assistance (DPA) Programs: Check local and state government programs that offer grants or second mortgages to cover down payments and/or closing costs.
Seller Financing/Assumable Mortgages: In some cases, a highly motivated seller might offer financing or you may be able to assume their existing FHA or VA mortgage, potentially avoiding a large down payment and high interest rates.

By leveraging your existing equity or utilizing specific loan programs, you can finance the purchase of a new home without needing substantial cash savings upfront.

11/10/2025

A real estate appraisal is a formal, unbiased opinion of a property's current market value, created by a licensed professional who inspects the property and analyzes market data. The appraiser considers factors like the home's size, condition, and features, and compares it to recently sold similar properties ("comps"). This is crucial for real estate transactions, such as mortgages, as well as for estate settlement and legal proceedings.

How a property appraisal is conducted
Property inspection: An appraiser will visit the property to examine its physical characteristics.
Data collection: They will note the square footage, number of bedrooms and bathrooms, age, condition, and any permanent fixtures or improvements.
Comparative market analysis: The appraiser researches recent sales of similar properties in the same area to determine value.
Market conditions: The current state of the local housing market is also taken into account.
Other factors: Additional factors like lot size, zoning restrictions, and potential rental income (for investment properties) are considered.
Report generation: The appraiser compiles all this information into a formal report that includes photos and a final valuation.

Why an appraisal is important
For buyers and sellers: It ensures the property's sale price is in line with its actual market value, protecting both the buyer from overpaying and the seller from underselling.
For lenders: Lenders require an appraisal to ensure the property is worth at least the amount of the loan they are providing.
For legal purposes: Appraisals are necessary for estate settlement, probate proceedings, and for fairly distributing assets among heirs.

11/07/2025

Open House 11/08/2025 Saturday 1:00pm-3:00pm
228 Loring Ave, Edison, NJ 08817

11/01/2025

• The most common mortgage fraud schemes are illegal property flipping, loan flipping, inflated appraisals, silent second, nominee loans/straw buyers, equity skimming, and false identity
o Illegal property flipping: Property falsely appraised at a higher value, then quickly sold, with the buyer taking the “equity” in the property
o Equity skimming: When an investor receives title to a property—often by using a straw buyer—doesn’t make the mortgage payments, and usually rents out the home until foreclosure occurs.
o Straw buyers: Conceal their real identity behind someone else's name and credit.
o Inflated appraisals: An appraiser secretly works with a borrower and provides a misleading appraisal report to the lender.
• Usury is lending money at an excessive (illegal) rate.
o Most states have laws designed to protect consumers from exorbitant fees and interest rates by limiting what lenders charge to reasonable amounts.
o Credit cards, retail installment contracts, and consumer leases are typically exempt from usury laws.

10/31/2025

Risky Loan Features, Such as Prepayment Penalties and Balloon Payments
• Under provisions of the Dodd-Frank Act, the CFPB enforces regulations that prohibit lenders from funding higher-priced mortgage loans without regard for a borrower’s ability to repay the loan.
• Lenders must take reasonable steps to ensure that consumers have the financial ability to repay a loan that uses a dwelling as collateral.
• Lenders comply with these provisions by writing what’s referred to as qualified mortgage loans. A qualified mortgage is a loan category that has certain affordability features. Certain loan attributes are prohibited, including:
o Interest-only loans or interest-only periods on a loan
o Negative amortization (periodic payments that aren’t sufficient to completely amortize the loan by the end of the loan term)
o Balloon (lump sum) payments that are required at the end of a loan term to pay the loan off
o Loan terms of more than 30 years
• Qualified mortgages also must adhere to standard lending ratios and can’t exceed specified amounts for up-front loan points and fees.
• Predatory lending is unfair or abusive lending to buyers. Predatory lenders impose deceptive, coercive, and exploitive practices to take advantage of consumers to increase their debt while financing risky loans.
• Fraudulent lending practices take advantage of consumers, encourage debt, don't consider affordability, encourage multiple refinancing, hide fees from borrowers, and often occurs in the subprime loan market.

Address

481 Memorial Parkway
Metuchen, NJ
08840

Telephone

(732)9108735

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