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Know which loan conforms to the property before you apply to a lender

By
Managing Real Estate Broker with Alpine Lakes Real Estate Inc., NHRE# 02863

Ask the expert: Financing a real estate purchase

 

Know which loan conforms to the property before you apply to a lender.

 

Question; are you all set with your financing?

Answer: My buddy has me all set with a great rate.

 

NOT SO FAST… will the property conform to the type of loan you have been assured you’ll be approved for, at this great rate?

 

         loan

Here is where your Realtor comes in and guides you through the process in determining if you will get that loan or waste three weeks thinking it’s a breeze only to find out the property: Type, Location, Association, or occupancy doesn’t allow the loan you are “pre-Approved” for.

 

 

The Government back loan programs Fannie Mae, V.A. Freddie Mac, Rural homes and other limited scope programs have a number of stipulations that can cause you to waste a lot of time on the wrong loan type.

 

If the property has any of these characteristics the Mortgage company may not be able to fund the loan: On-site rental Program, Property in an association where 10% of the sites are still owned by the developer, or if 10% or more owners are delinquent in their dues. If that waterfront camp is only accessible seasonally, if the condo board doesn’t have adequate directors liability insurance, or in the case of V.A. loans the Electric Panel isn’t up to code these thing may kick you out of the loan you thought you were going to get. There are even more examples of non-conforming type properties, but suffice to say know which lender can help you puts you ahead of the curve when making an offer, or when meeting the time table for the purchase contract.

 

I recommend you try a Portfolio Lenders first. The local savings and loan banks can offer financing on any type of property with a variety of loan packages. It may be more money down, a higher interest rate, or an adjustable rate program. But if you want to buy, the local bank can make a local decision in-house…or put you in a government program if the property conforms.

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                                                                                                                                                                              Your-White Mountain New Hampshire real Estate Expert

                    steve@alpinelakes.com toll free 800-926-5653 /cell 603-381-7898

                        MLS search and Realtor web site: www.alpinelakes.com

                         My outside Blog: www.steveswhitemountainblog.com

                    Lincoln NH &  Local interest site: www.localism.com/nh/lincoln

    Grafton County NH MLS search

Comments (3)

Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

We have a lot of resort projects that have rentals, or time sharing, or issues with their association, but I still have a hard time getting a buyer to believe his buddy can't do the deal after he says he can.

 These issue apply all over not just in resort locations.

Feb 20, 2018 01:10 PM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Most all agents will list the acceptable loan types so it doesn't make any sense to go in blind

Feb 20, 2018 03:17 PM
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

William... While I applaud buyers for getting a pre-approval letter before making an offer, I also want my buyers to know when their lender will not be able to complete the transaction due to issues with the property back ground. If you start with the right lender the transaction need not be stressful or require extensions to make up for starting the loan process over again.

Feb 21, 2018 04:40 AM