Nationwide Home Mortgage Loan Company

It’s an epidemic that hasn’t been seen since the great depression; houses are being foreclosed at three times the normal rate in some counties across America. As a result of this sudden rise in foreclosures a new type of business has sprung up within the real estate market called the “short sell.” If you are considering bankruptcy or foreclosure it is extremely important to understand this practice that helps and hinders many at the same time. Read the rest of this entry »

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Many deals have been killed by a loan officer over looking this simple little check box on the 1003 (Standardized Uniform Residential Application). The fact is, we often forget that lenders are holding our home as collateral, and more times than not own more of the house than the borrowers do. Lately, lenders have become more and more skeptical about the type of property they choose to hold as collateral for these loans. Read the rest of this entry »

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.

The looming mortgage crisis has affected almost everyone in all facets of life. When the homes stop selling the builders stop building, the carpenters stop nailing, the painters stop painting, paint stores stop selling and Home Depot stock hits record lows. Vertical damage is universal in almost all aspects of retail, services and durable goods. Let’s face it; America is a nation that is fueled by land development and salesmanship. Unfortunately, ingenuity, invention and production have taken a back seat to Americans selling products owned or built by other countries. For Goodness sake, GM is second in sales to Toyota now, who’d a thunk it? Read the rest of this entry »