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The type of property you are trying to get a loan for has a
significant impact on the terms and availability of that loan. If you
are a first time home buyer you may be able to get a better deal on a home
mortgage than the average home buyer. The federal government
offers a variety of programs and grants to first time home buyers.
Lenders look favorably on first time home owners for home mortgages
because they know it is the first home and that the occupants will
strive to take care of the home. A mortgage specialist can help you find one of these lenders.
If you are attempting to get a home
mortgage for a second home you may not get as favorable treatment
from the lending institute you are dealing with. If the home is not
going to be your primary residence, the lender will see this as a bad
sign because you do not have as much of an incentive to not default on
the loan. If the property is not your primary property, a home
mortgage will probably carry a higher rate. You will also miss out
on the opportunity to take advantage of the first time home buyer
programs offered by the federal
government.
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Types of Properties |
|
First Home |
| Federal governments programs and
grants are available, generally can get a lower rate |
|
Second Home |
| Generally will carry a
slightly higher mortgage rate since it is not your primary residence,
unless you can prove that you will occupy the home. |
|
Investment Property |
| To qualify for certain investment property loans, it helps to be in the rental business for 2 years
to get a fixed rate. If you have not been in business for 2
years, you may need to do an ARM (find out about this in the next
section). Investment property also carries a higher interest
rate.
A mortgage specialist can help you determine the best plan to help you maximize
your investment money and generate a HIGH RATE OF RETURN. |
|
Mortgages
