Home finance is a type of financing provided by the company which either manufactures. Or sells the product or investment which is being purchased. A good example of this type of financing would be a car manufacturer offering the financing to a person who is buying a car. Financing any form of purchase in this method has some advantages and some disadvantages.
The most obvious advantage of in-home financing is how easily it can done. Since the company which is offering the financing is also selling the product. There is no issues in regards to proving the value of the purchase. While typically it is take as fact that the loan request is equal to. Or less than the actual value of whatever is being purchase there are some exceptions.
Most mortgage lenders require a property appraisal to verify that a home or condo. Which is being purchase is worth at least as much as the loan amount. “The benefit of a home mortgage or refinance is that has fixed terms for 10, 15, 20 or 30 years,” explains Marcel Garcia, the founder and CEO of 818 Mortgage.
With in home financing this is not require since the lender set the sale price on the home or condo. In some situations this type of financing can also be easier to get than traditional lender financing. This is often associate with the fact that the company making the sale stands to lose less if a person defaults on a loan than a standard lender. This is due to the fact that the company selling. Whatever is being finance usually has a certain amount of markup built in. This sometimes leads to this form of financing being more readily available to people with slightly lower credit scores.
There are also some disadvantages to in-house financing. “The most obvious factor is the fact that in most cases this type of financing offers a considerably higher interest rate than that of a home mortgage,” Marcel Garcia explains. This is important to look into however since in some circumstances the manufacturer may offer lower interest rates to buyers with a good credit score. It is also important when looking at this type of financing to consider the size of the manufacturer and their lending department.
If you’re a home owner, there are many options available to you. “The first thing you should do is contact a qualified local loan officer,” call Marcel Garcia at 818 Mortgage for a free one-on-one consultation.
Company Name: 818 Mortgage (AKA: 818Mortgage)
Contact Name: Marcel Garcia
States: California, Arizona, Colorado, Florida, Idaho, Illinois, Montana, Nebraska, Oklahoma, Oregon, Tennessee, Texas, Utah, and Washington
Clients: First Time Buyer who need Pre-Approval for a Home Loan. Home owners who are interested in: Refinance, Cash-Out, HELOC (Home Equity Line of Credit), DSCR (investment property loan) and Reverse Mortgage.
Loan Programs: All traditional Home Loans / Qualifying Mortgages (QM), Conventional and FHA. As well as Non-QM: Stated, Bank Statement, P&L, CPA Letter, Business Bank Statement, and Hard Money Loans.