Financing
Condo Hotel Financing Too Expensive For Investment Profit
A condo hotel may not be the best choice for an investment property because the financing for a condo hotel can be very expensive. If you can even get a loan for a condo hotel property, you probably will not make any profit because it is so expensive. Condo hotels became very popular, but usually the original developer is the only one to make a profit on a condo hotel.
Condo Financing Faces Strict Rules From Fannie Mae, Freddie Mac, FHA
If you’re looking for home loan financing, new condo financing rules went into effect that may make financing for your condo impossible. Fannie Mae, Freddie Mac and FHA have new stricter rules when it comes to condo financing. You may have to buy in an approved property, not have renters in your condo building, and prove higher cash reserve levels. Educate yourself on rules for condo financing before you attempt to get a loan through Fannie Mae, Freddie Mac or FHA.
3-2-1 Mortgage Buydown Helpful For Work Relocation
A 3-2-1 mortgage buydown will reduce the interest you pay on your mortgage. A mortgage buydown is used by some companies as an incentive for work relocation and to help with changes in cost of living. A 3-2-1 mortgage buydown can help make your expenses more manageable, but should not be used as a tool for profiting from real estate. You won’t be able to time real estate exactly and a 3-2-1 mortgage buydown will probably only be helpful if you’re going to be staying in the house for several years.
203k Rehab Loan Information
The FHA 203k rehab loan (or 203(k)) Program offers government-backed loans to rehab and refinance a borrower’s property. According to the Office of the Comptroller of Currency, this is an important program that can help stabilize the nation’s struggling neighborhoods. Learn more about the FHA 203k loan and other types of rehab loans available below.
Refinancing Mortgages Under the Obama’s Making Home Affordable Plan and Primary Residences
The Obama Making Home Affordable Plan can only be used right now for refinancing of mortgages on primary residences. If you are struggling with the mortgage on a vacation home or investment property and want to refinance, the home mortgage will not qualify for the Obama Making Home Affordable plan. You may be able to refinance your first home to take out equity on your first mortgage or primary residence to help with the mortgage on your vacation home.
Refinancing Mortgages With Falling Home Values And The Revised Obama Plan
Falling home values have sure hurt homeowners. As interest rates have come down, these same homeowners are trying to refinance their loans but are having trouble due to the lower value of their homes. Recent Obama administration proposals are attempting to help homeowners. Before, if your loan was up to 105 percent of the value of your home you could take advantage of the Obama Making Home Affordable program, this past week that amount was raised to 125 percent. We’ll see if the continued slide in home prices and the new plan can help homeowners.
Home Loan Financing And Credit Score
When you build a home you may take out a construction loan. You may later decide to convert that construction loan to a permanent loan. Does changing your home financing affect your credit score or credit history? Will your credit score or credit history be negatively affected if you refinance a home loan? Learn to distinguish between home loan financing and what affects your credit score.
Getting Pre-Approval From Lender
For some lenders, pre-qualification and pre-approvals are the same thing. As a borrower, you’ll want a lender to give you a written commitment to fund a loan. Lenders might approve more than you can afford, so remember that it is up to you to make sure your loan works with your budget.
Difference Between Pre-Qualification And Pre-Approval
Getting pre-qualified for a loan means the lender has taken your basic personal financial information to determine an amount you’re qualified to borrow for a mortgage. Getting pre-approved means applying for a loan with the lender’s commitment. Having a pre-approval will ensure you have financing in place when you shop for a home.
Better To Take Student Loan Or Mortgage Loan?
A husband and wife are ready to buy a home, but the husband is entering graduate school and isn’t sure if he’d be better off taking out student loans or a mortgage loan. While mortgage rates are low, student loan rates are even lower. Plus, the interest paid on student loans is deductible on your federal income taxes.
