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15 Cards in this Set
- Front
- Back
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Conventional loans |
No government guarantees or insurance. Minimum down payment 20%. |
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Conventional Insured Loans |
No Government guarantees or insurance, but insurance from private insurance companies. |
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Private Mortgage Insurance |
PMI Insurance from private insurer that protects lender. Required for all loans with less than 20% down. |
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M.G.I.C |
Largest private insurer. Mortgage Guarantee Insurance Corporation |
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Amount of loan generally based on what? |
Appraised value or the sale price, whichever is lower. |
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Lender is concerned with what? |
1) value of property 2) income 3) return of investment |
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California mortgage financing Alternatives: 6 |
1) syndicate Equity Financing 2) Commercial Loan 3) Bonds or Stocks 4) Long-term Lease 5) Exchange 6) Sale-Leaseback |
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Syndicate Equity Financing (Alt. Mortgage financing) |
Syndicates offer small investors the opportunities to invest in high-yield real estate. |
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Commercial Loan (Alt. Mortgage financing) |
Straight bank loan that the borrower obtains based on good credit or NON-real property collateral. |
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Bonds or Stocks (Alt. Mortgage financing) |
Some large corporations sell stocks or general obligation bonds to buy real property without mortgage |
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Long-term Lease (Alt. Mortgage financing) |
Good approach if property is good as is. 100% of rent being deductible as expense and tenant’s total debt load remains the same. |
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Exchange (Alt. Mortgage financing) |
A trade of properties Properties must be free of mortgage. Trade involves NO financing |
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Sale-Leaseback |
Property owner sells his parcel of property, but then leases it back from the purchaser = original owner retains possessory rights |
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Sales Contract |
The seller or vendor, agrees to convey the title to real property after Buyer or bender has met certain named conditions and which does NOT require conveyance within 1 YEAR. Use to be used a lot, but due to more restrictions. Not used so much in Cali. |
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Installment sales contract |
Seller becomes lender |
