Some home builders are including in their contracts a 1% fee to be paid to them every time the house is sold  for up to 99 years.  The money is nothing more than profit for the builder and is not used for up keep or any type of property improvements.  Lenders are getting keen to this and reviewing contracts very carefully looking for this clause.

If the lender sees this clause in the contract they will likely deny the buyers home loan.  Lenders will be on the hook to try to sell a home with an additional 1% fee everytime the property is sold making it harder to sell in a case of default.  Anything that adds a layer of risk will either cause the lender to adjust the interest rate to reflect that risk or they will simply deny the loan altogether.

Just when a Realtor thought their job was hard enough.  Now you will want to comb through these builder contracts very carefully before assisting your buyer through the process.  I would even recommend a full underwriting approval on all new construction homes to protect your buyer form a possible loan denial.  If the underwriter reviews the contract and the buyers qualifications and approves the file then you would have significantly reduced the likelihood of problems.

If you are in the states of WA, OR, CA or NC we will gladly package a loan without a property address and submit it for underwriting allowing you the peace of mind that the loan shouldn't become an issue. E MAIL or (888) 206-5781 Otherwise ask your favorite trusted lender to do the same. Of course one could take the simpler approach and focus mainly on existing homes.

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