Loans |
Posted by admin
Mar
08
2009
One of the most important part of the average real estate purchase is normally the mortgage financing necessary to obtain the property.
The average home buyer does not have the assets to purchase property without some type of mortgage financing. Even those home buyers who can afford to pay for the entire property with cash, it is sometimes not a good idea to use mortgage loans for tax and investment purposes.
Mortgage programs typically set limits on the loan amounts available for purchases. These loan-to-value (LTV) limits are based on the property’s value, type and program.
For example, conforming programs–which normally have the best rates and terms–impose the following LTV limits on purchase loans:
- Single-family home or condominium unit, owner-occupied: 97%
- Two-unit residential property, owner-occupied: 90%
- Three-unit residential property, owner-occupied: 80%
- Four-unit residential property, owner-occupied: 80%
- Single-family, 2nd homes: 90%
- Single-family and two-unit residential, investment (NOO): 80%
- Three-unit & four-unit residential, investment (NOO): 75%
Loans |
Posted by admin
Mar
08
2009
For most Americans, buying a home will probably be the most expensive investment of their lives. For many Americans, it will be their only major investment. Luckily, real estate is still one of the best types of investments available—and today, it is available to more Americans than ever.
The closing or settlement is the culmination of the typical purchase transaction. During the closing, the buyer provides personal finance and mortgage loan funds to the seller. In return, the seller provides the property’s title and necessary keys to the buyer. That’s the simple, easy description.
The closing is actually a hectic event for many home buyers and real estate investors, especially for rookie or novice purchasers. The purchaser must review and sign dozens of legal documents and disclosures, the bulk of which are required for the mortgage financing. The buyer often must also satisfy final documentary, verification or settlement conditions, all of which are meant to satisfy all legal, lender and seller requirements.
With counsel from experienced real estate agents, attorneys and mortgage lenders, home buyers can and should relax. However, the sheer weight of the first home purchase often does not allow much relief for the home buyer.
Loans |
Posted by admin
Mar
08
2009
The purchase mortgage loan is any financing used to finance the purchase transaction of a real estate property. Although the typical community bank will only offer a handful of purchase mortgage programs for their customers, there are actually hundreds of different programs available for the home or real estate investment purchase.
Tax loopholes and benefits make mortgages and real estate properties excellent tax shelters. The interest that homeowners pay on their mortgage loans are tax-deductible, which reduces the borrower’s taxable income. With investment properties, interest is normally not tax-deductible. However, real estate investors can deduct certain expenses–the most profitable of which is depreciation.