Posted on: 28th Jul, 2009 06:06 pm
My brother and sister in law are buying a condo in Florida but they live in Illinois and will be coming down at times but renting it out for the most part. It will be lived in, Pulte mortgage denied them finanicing if it was termed "vacation" home but approved it if it was termed "investment" property.
Investment property will incur another $3000 in points.
Could you tell me what the difference is and why one would e denied while another one (more expensive ) would be approved? What do you suggest?
Investment property will incur another $3000 in points.
Could you tell me what the difference is and why one would e denied while another one (more expensive ) would be approved? What do you suggest?
I would suggest going to another lender who will allow the loan to be considered a vacation or second home. Your rate will be better and you can also put less down.
and i agree with eric here. if the home is in an area that consists, at least in part, of vacation homes, there's no reason not to consider it that way. i have to state my opinion that since it was pulte that you cited, they must also be the builder of these homes; and that they know your brother won't be using it all that often for vacations but will have tenants.
another lender is imperative here.
another lender is imperative here.
Thank you for your replies. My sister in law and brother have been advised that Pulte cannot finance the home as a vacation home as it will have a renter. They also said seeking another lender will slow the process down considerably and they will be responsible for costs incurred.
Could it be that the sales agent receives commision from Pulte for pushing them rather than allowing other lending institutions. Can they do that? I realize each lending institution can make their own rules but iare there regulations or an agency to check with about this?
Could it be that the sales agent receives commision from Pulte for pushing them rather than allowing other lending institutions. Can they do that? I realize each lending institution can make their own rules but iare there regulations or an agency to check with about this?
Hi,
I believe it is quite possible that the sales agent recieves a commission from Pulte for pushing them and that's why he doesn't want other lending institutions to be involved in this purchase transaction. It could be possible. You ought to look for other lenders. If Pulte will not offer the loan, there's no point in trying to persuade them to approve the loan. It might take a little more time and cost you a few more dollars, but I think it'll be worth it.
I believe it is quite possible that the sales agent recieves a commission from Pulte for pushing them and that's why he doesn't want other lending institutions to be involved in this purchase transaction. It could be possible. You ought to look for other lenders. If Pulte will not offer the loan, there's no point in trying to persuade them to approve the loan. It might take a little more time and cost you a few more dollars, but I think it'll be worth it.