“My property is on two parcels; can you lend against it?”
That question comes up all the time, and our answer is always “yes, as long as your property is on one lot.”
APNs are numeric designations assigned by county assessors to portions of land to identify them for tax purposes.
Lenders, however, focus on “lots” rather than Assessors’ Parcel Numbers (APNs) or parcels.
A “lot” can have one or more APNs.
Most lenders will not lend against properties with more than one lot because that requires them to cross-collateralize two properties/lots (something most lenders will not do).
In other words, most mortgage lenders will not record a single mortgage or deed of trust against two separate properties or lots.
Lenders will, however, record a mortgage or deed of trust against a single lot with multiple APNs, as multiple APNs are never an issue.
NOTE: The formal legal description (in a property profile) will usually indicate if there is more than one lot. If readers ever have questions though, our appraisal team is happy to help.
Comps from Nearby Cities
We have a borrower with a property in Oakland, CA, but it is adjacent to Piedmont, CA. (He’s also on two parcel numbers – which is what prompted this blog.)
Anyway, as most readers in California know, the median home value in Piedmont is several times higher than that in Oakland.
Our borrower’s property, however, is in Piedmont’s school district (despite its Oakland address), and it has access to all of Piedmont’s excellent amenities.
In situations like this, appraisers will often use comparable sales from the nearby town (Piedmont) in an appraisal report.
More often than not, appraisers will not use comparable sales from nearby towns or cities, but they will when there is a shared school district or when the towns or cities are generally considered “equal” from a marketability perspective.
