What Is a PLA and How Can It Be Used for a Downpayment?

I’m always looking for creative solutions to help my clients purchase their homes. One of the most common obstacles, particularly for divorced women, is coming up with the downpayment. I asked my good friend, Jay Gordon, of the Popper-Gordon Group at Morgan Stanley, if he had any ideas to share.

He suggested creating a Portfolio Loan Account (PLA). This can be set up to borrow against most account types at Morgan Stanley, with a few exceptions.

Provided that you maintain a certain level of collateral, a PLA can give you the line of credit you need to cover your downpayment. In most cases, there are minimal or no fees to set up your PLA and it can be established in a week or two, without a lot of paperwork.

If you’re concerned about the plan to repay the loan, there is good news: the repayment structure is flexible, offering variable and fixed rate options. Variable rate PLAs can be paid off in full at any time with no penalty.

Upon approval of your PLA, you will have immediate access to your line of credit by writing a check or wiring funds when needed. You won’t need to reapply each time you borrow against the PLA. There is no obligation or penalty if for any reason you decide not to use your line of credit.

If this option for liquidity makes sense for you, or if you have any questions regarding a portfolio loan account, please contact me at 617-965-1236.

October’s Home Value Improver

At this time of year, you may find yourself driving to work in the dark and driving home in the dark. This is a good time to view your home when the sun is not shining on it. How is the lighting? Are the walkways safe? Does your home have good curb appeal? Is it lit well enough to keep intruders away? These are important questions to ask, especially for divorced women who are single moms. Good lighting is used for more than beautifying your home. It’s also an important safety measure that all homeowners need to consider.

Here are some creative tips for outdoor lighting:

1. Pathway Lights. If there is a pathway to your front door, be sure to properly light it to avoid tripping on uneven pavement or avoiding ice that can cause slip-and-fall accidents. You don’t need very bright fixtures, but enough light to safely guide people to your door.

2. Patio Lights. Use indirect light for outdoor gatherings. Cool bulbs rather than harsh light make for a more comfortable outdoor event.

3. Doorway Lights. Install two small lanterns on either side of your door frame. For larger entryways, consider this option, but add a hanging lantern, centered above the door.

4. Landscape Lighting. If your home is set back from the street, it is recommended to have landscape lighting. A well-lit home without any landscape lights can look isolated and appear standoffish to your new neighbors. A few simple lanterns emitting soft white light will make a noticeable difference.

If you are looking for an outdoor lighting expert, I am happy to recommend one of my most trusted contacts. Call me at 617-965-1236.