I would like to run a small bed and breakfast on an occasional basis. (2 or 3 bedrooms maximum). If the rest of the house is my residence, do I need to apply for a commerical mortgage or can I have a residential mortgage? I will be buying a new property for this purpose as my present property does not have ensuite bedrooms
Ive just purchased an existing Guesthouse which required a commercial mortgage, but the bank would only sanction the money after reveiwing 3yrs accounts and my own buisiness plan. The other thing to look at is they will only a maximum of 70%. Some indipendent mortgage companies will only lend 50%, my advise there would only use a bank. While viewing several guesthouses i came across a couple that brought their house and converted it to a guesthouse, and after having all the work completed they then informed the various banks and insurance people of what they had done. I belive their mortgage hasnt changed, just the extra cost of insurances and taxes. Good luck with your search, we are just waiting for a date to move and very excited about it.
I heard about this just the other day,…why hadnt i heard of it sooner?
My husband and I are cooped up in our tiny rental home and its getting tighter with my 10 month old crawling around, but i cant seem to get a response from any lenders, whats holding it up? If there is anyone out there who is enjoying ther successful USDA mortgage, give a shout out! Also, what levels of low credit has the USDA approved for loan? Thanks!
You have to meet certain income restrictions, and you have to live in certain specified rural areas. Here’s info on the program:
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Remember that legitimate info on government programs can always be found at dot-GOV sites, not necessarily at dot-COM sites.
I can actually afford to pay it back!
There really are MUCH fewer subprime mortgage loans available than previously. However, a few companies that are known for doing subprime loans are: Wells Fargo Financial, Citi Financial, Beneficial/HFC, and a few others. Best bet is to repair the credit first, then get your loan later.
11.5 years in mortgage industry both on wholesale and retail side looking for good career minded company to utilize experience and knowledge in Tampa, FL area. Any takers? Willing to start ASAP. Thanks.
Honestly, you may want to look at FEMA. They’ve got plenty of business down there and they could always use a hand. You won’t make as much as you did in sales though.
Under President Jimmy Carter, the Community Reinvestment Act (CRA) was passed. It required federal financial institutions to encourage banks to give home loans to persons with little credit and low income. Economist Russell Roberts said that the CRA played a major role in creating the sub-prime mortgage crisis in the U.S.
Under Bill Clinton, the CRA was expanded and Clinton set targets for low-income home ownership at the Department of Housing and Urban Development and at Fannie Mae and Freddie Mac. Banks were forced by the federal government to provide bad loans to unqualified people.
Rep. Barney Frank (D-MA) is Chairman of the Financial Services Committee in the House of Representatives. In 2003, he said of Fannie Mae and Freddie Mac: “These two entities – Fannie Mae and Freddie Mac – are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.” In the late 1980s and early 90s, Frank was engaged in a sexual relationship with Herb Moses, who was Fannie Mae’s assistant director of product initiatives! Bill O’Reilly exposed Frank’s involvement in the mortgage crisis: YouTube – O ‘Reilly – Barney Frank Had Affair with Fannie Mae Exec. Frank looked the other way, while our economy was being destroyed by federal policies created in Clinton and Carter Administrations. (Freddie Mac and Fannie Mae help fund the homosexual agenda.
In 2008, Freddie gave $20,000 to a Parents and Friends of Lesbians and Gays (PFLAG) event; Fannie Mae gave nearly $19,000 to the same event. Freddie has donated $125,000 and Fannie donated $80,000 to homosexual groups since 2005.)
Senator Christopher Dodd (D-CT) is head of the powerful banking committee in the Senate. He and Barney Frank consistently resisted attempts by the Bush Administration to closely regulate Fannie Mae and Freddie Mac. Dodd also got preferential treatment from Countrywide on two mortgages. Countrywide was one of the biggest subprime providers.
Barney Frank and Christopher Dodd received thousands of dollars in contributions from Fannie Mae and Freddie Mac over the years. Dodd has received $133,900 since 1989; Frank received $40,100. (While in the Senate, Barack Obama received $105,849).
As long ago as 2003, President Bush was trying to get the House and Senate to carefully monitor the actions of Fannie Mae and Freddie Mac. His efforts were rejected by Democrats.
Obama associates headed Fannie Mae and Freddie Mac during the years that the crisis was getting out of control. Obama friend Franklin Raines ran Fannie Mae and collected $50 million from it. Obama friend Jamie Gorelick worked for Fannie Mae and earned $26 million; Jim Johnson, formerly Obama’s vice president search committee chairman, hauled in millions from his work with Fannie Mae as CEO.
ACORN, the socialist group that routinely engages in voter fraud, was involved in pushing for risky loans to people with bad credit histories or little money for down payments. ACORN intimidated banks in Chicago and elsewhere to give risky loans! Obama actually trained ACORN workers when he was a community organizer in Chicago! ACORN used provisions of the Community Reinvestment Act to delay or halt efforts of banks to merge or expand until they had lowered their credit standards!
Well, they didn’t. Someone seems to forget that just like in the Great Depression, this current mess was created by a decade of Republican legislation. And now they are crying like cry babies that it’s Obama fault. Oh my! aren’t they delusional.
I am a first time home buyer and just locked my interest rate. I am paying 20% down and my current credit score is 780. I wonder how much and which way it is going to change after my closing. Is it going to go down significantly? I have no other debts such as credit card, car or college loans etc.
Your score will definitely be impacted at first. But it isn’t something you should worry about at all. Firstly, you’ve achieved the biggest thing that you can ever achieve with a good credit-score…a loan on a home. Second, you’re score may drop 30-40 points at first but after a year of on time payments it’ll jump dramatically. Thirdly, there is nothing that will require a credit score that high, (except perhaps another mortgage) and if there is something else you’re trying to get you can now use your home as collateral (seeing as you have 20% equity.)
I am a victim of a predatory mortgage broker and a predatory mortgage lender. The mortgage broker claimed to be the lender.
The lender presented himself to me as the Servicer of the loan, when the lender was in fact the lender and the servicer of the loan. I end up paying the broker 2times, because the lender paid the broker his commission out of my loan, and the broker make me pay a second time thru a fictious escrow to justify the expenses.
The lender charged me high interest rate, abusive prepayment penalty, buy down point and I end up with loosing my 2home. do i have any recourse?
If you feel u were a victim of predatory Lending check with your State that regulates MB & Lenders. & tell them your story. You should be vigilant about filing a complaint, there are too many people in this world who want to make money at other peoples expense.
i.e cover the cost of switching lenders and £40,000 on top.
this entirely depends on your level of equity and affordability.
1st off the total including the additional borrowing cant be more then 80%, in the current climate mainstrean lenders will not allow this, niche lenders may, however they will make sure they bleed you dry with extortionate fees and interest rates.
2nd affordability, 40k is a relatively small figure however you must again be able to sure that you will be able to afford the higher payments, this requires that you fit into the lenders own affordabiliuty calculator.
Bear in mind the further you stretch either of these conditions the worse a deal you will get from the lender as you will be increasing risk proportionatly (in the eyes of the lender)
also if your are still within a tie-in period with your current lender you will need to pay Early Repayment Charge to release yourself from your current deal, this fee can be quite high (3-8k)
I’ve been looking into these a lot lately, but I’m having a hard time deciding what company to work with. Anyone work for one – or have a reverse mortgage – that they can recommend?
No, but before you take one read everything about them on HUD.GOV and AARP. They can’t be undone so you are stuck with them for life.
Since you are young enough to use the internet you are too young to know your entire future. I won’t consider one before 85 because so much can happen between 62 and death. You could be widowed, remarry, decide to move to a warmer or cheaper place, move in with a SO, move in with the kids or not want a house and want to move to an apartment. With the reverse mortgage you won’t have as many choices since you have to pay off the debt before you can move.
I saw a home in my town( I Live in GA) and it’s a little over 15 thousand. I have about 3k to put down on the hosue but I want to know if they even give out mortgages since the price is so low on the home.
No they do not, houses that low are sold for cash.
You can get a personal loan though, and use that to buy the property.