Nationwide Home Mortgage Loan Company

Occupancy type is pretty straight forward. Conventional mortgages are designed to help everyone buy a home, specifically a primary residence (owner occupied) . When you use conventional financing to buy an investment property (non owner occupied) you are charged more by way of a higher interest rate or fees.

Many people will buy homes as a primary residence then convert them to rentals. This is ok as long as you legitimately stay in the property for a year. There is another classification of occupancy type called a second home . Second homes can be purchased very close to the same pricing as a primary residence, the biggest difference are the loan to value restrictions.

One thing to be careful of is that many people try to purchase second homes and use them as investment properties. Lenders are wise to this, and if you are caught using a second home as an investment property you could have your loan called due, this is not fun. Not to mention, Fannie Mae and Freddie Mac consider this fraud and can carry Federal fines or imprisonment. Lenders regularly make occupancy checks to ensure they are within conventional lending occupancy standards.

Here are three main occupancy types:

• Primary Residence - A home you intend to occupy, affords you the best rates.
• Second Home - A home at least 50 miles from your primary residence, or situated within a resort or vacation area. Affords you the best pricing with a larger down payment.
• Investment Property - A home purchased with the intention to flip for profit or rent. Usually will have higher pricing 1 - 2 points depending on down payment and loan to value.
• Commercial Property - This property type is not insurable by the conforming agencies.

Long ago mortgage websites on the web were merely placards and billboards for brick and mortar established mortgage companies and were very rarely seen. A little known company called Lending Tree changed mortgages online and offline forever with their revolutionary approach to mortgages. (more…)

Today’s mortgage market is different than anyone has ever seen in the history of mortgages. Getting your best mortgage deal may require a little homework on your part, but they are out there. Many of the mortgage programs that used to be available to home owners and future home owners are simply gone. (more…)

Here are a few of the biggies ….

1) The No Closing Cost Loan
Let’s think logically about the “no closing cost” loan. Do you know an attorney that works for free? How about an appraiser? Perhaps state and local taxes will be waived because were nice people. Title fees, processors, underwriters, monthly escrows and much go into putting a mortgage together REGARDLESS of who you choose as your lender. The “No closing cost loan” should be called the “we hide your closing cost in an inflated rate loan”. The truth is ALL mortgages have fees associated with them, if you do not pay them the lender or broker must. (more…)

In order for you to get your best deal on a mortgage, we have found that it helps to understand how each mortgage company operates. Once you understand the types of companies offering mortgages and how they earn a profit you can begin to negotiate with greater certainty. There are different business models for mortgage companies they can be simplified as: (more…)