Question by Chica: Can a loan be denied due to lack of comparables in our area?
So I applied for a morgage loan back in Oct. We found an investment property, and we were pre qualified. It seemed like everything was a done deal 100%. 2 weeks before the closing the underwriters start to ask for lots of things, income not enough because they can only count 75% of the income coming from the investment property, to solve that we put about 10% down on an FHA loan( that we qualified for since we would live in part of the investment complex) Now today on closing day that seemed for sure on Monday we hear that our loan has been denied due to “declined due to the lack of recent comparable sales in the area of like properties”. That’s after we put earnest money down and paid for an appraisal and sent all of our information to the company( bank balances, account #’s, business acct and personal acct., ssN’s everything. Can a loan be denied because of lack of comparables in the area? And now I feel nervous about them having all of our personal info and acct #’s.
We had 4 comparables all within the same price give or take 10 to 20k one was right next door, other 1 mile away and two 10 miles away
The appraisar came with a value for the place and the 4 places it compared it to. The mortgage company had the appraisal for a month and never said a thing until 2 days before closing.

Best answer:

Answer by jim
It means the appraiser didn’t have comparable sales of like properties with in the last 6 months to use on the appraisal. He is suppose to have 3 comparable. Maybe the ones he used are not considered close enough to the type of property your trying to purchase, or maybe there were not any sales of same type properties.
Good Luck
Jim

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Technorati Tags: area, comparables, denied, lack, Loan

Question by Butkus: Can my daughter claim a house as her primary residence on loan papers if my wife and I are co-borrowers?
My wife and I have our own house. In the same town my wife and I own a rental house that my daughter lives in, by herself, 100% of the time. She pays rent to my wife and I. My wife and I want to refinance the rental house and add my daughter to the title at the same time. My wife and I, in addition to my daughter, would be co-borrowers on the loan papers, although for all practical purposes, my daughter will do nothing to help us qualify for the loan. If my daughter is a co-borrower on the loan docs, and she is on the title with my wife and I, can the three of us ask the bank to fund this motgage as a “primary residence” and not “investment property”? This would give us a better interest rate.

Best answer:

Answer by Claire
I think you can.

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Technorati Tags: claim, coborrowers, daughter, House, Loan, papers, primary, residence, wife

Question by Alpha Bravo Charlie: what qualifies as a second home for mortgage loan?
I am working overseas, I want to buy a house in Texas. Can I consider it to be a 2nd home and ask the mortgage company to give me interest as second home instead of calling it “investment property” ?
The interest rates and taxes for 2nd home is less than investment property.

It will be rented out till we come back to Texas.

Best answer:

Answer by Tim
Because you are renting it out, it is not a second home. A second home has to be one that you can visit and stay at as your second home.

If it is rented to someone as their residence, it is an investment. You can still deduct interest, depreciation and other expenses as a investment property that you would necessarily be able to deduct as a second home.

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Technorati Tags: home, Loan, mortgage, qualifies, second

Question by jamie: How do I know if my loan is non-recourse / recourse?
I live in california, but made a bad investment in Arizona. I will keep my house in California, but the lender will foreclose on the Arizona investment property.

I have THOUGHT for the past few weeks that my loan for the Arizona property, which was taken out to buy that property (“purchase money”) and has never been financed, I thought it was non-recourse….

But now I am hearing that in California non-recourse is just on the first mortgage.. Is this true? I have talked to two lawyers Ca/Az and neither one mentioned this to me… How can I tell for sure without tipping off the banks.

I tried calling the bank a couple of weeks ago and gererally asked how I would know if my loan was non-recorse. The woman I talked to didn’t even know what that mean. Nice!

Help!

Best answer:

Answer by real estate guy
you are screwed. First, nonrecourse mortgages are ONLY!! on 1st mortgages (purchase money, not refinanced) on RESIDENTAL PROPERTY ONLY. This is an investment property. It’s a recourse AND!!!! in this case the IRS will tax you as income for the bank’s lose – again, for the reasons above. You may be able to work a deal out with the lender (short sale, etc), but the IRS will still hit you and there’s no way out, EVEN BK will not resolve this problem.

I would talk with a real estate/tax lawyer ASAP. YOu can’t just walk away.

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Technorati Tags: know, Loan, nonrecourse, recourse

Capital Direct Lending presents author Douglas Gray on using the equity in your home to finance a mortgage helper.

Duration : 0:2:23

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Technorati Tags: Equity, Finance, home, investment, Loan, Property