Real Estate Financing: Loan Programs!
Transcript: Fun Fact: The word mortgage is a French Law term meaning "death pledge", meaning that the pledge ends (dies) when either the obligation is fulfilled or the property is taken through foreclosure -Loan-to-Value ratio (LTV) high, moderate, or low standard risk analyzer higher LTV = higher cost loan amount/value of collateral -Private Mortgage Insurance (PMI) LTV in excess of 80% protects the private lender cancel premium payments at 20% Fun Fact: corn and marijuana are the most profitable agricultural products. Types of Leases: Operating Lease Capital Lease Sale and Leaseback Arrangement Combination Lease Synthetic Lease Lease: A lease agreement is a contract between a lessee (borrower) and a lessor (owner) for the use of a building, property or other asset. It allows the lessee to use the asset for a specified rent and period of time. A lease agreement formalizes the duration of the lease, identifies the assets under lease, includes the names of the two parties and specifies the payment method (periodic or lump sum). conforming ($417,000<, single family)or nonconforming (jumbo loans) credit score minimum 620, below 740 = FEES down payment 5-20% home equity builds fastest fewer bureaucratic hurdles Ideal for borrowers with excellent credit who can afford a down payment of 5 percent or more. Change to Building Codes Combination Lease Modern Real Estate Basics! Leases, Building Codes, and Financing A type of operating lease that is recorded on the income statement as an expense. Allows the borrower to use the asset without being burdened by tax. Synthetic leases offer the most advantages Financing sources available: bank debt, private placement and commercial paper on a fixed or floating-rate basis. Used to finance equipment for hospitals, corporate headquarters, movie theaters, retail branches, data centers, etc. Capital Lease Also known as service leases Agreements between two parties in which one provides rent to the other for using an asset. The borrower uses an asset for only a fixed portion of the assets life. The owner of the asset is responsible for all maintenance costs and other operating costs. FHA Loans Federal Housing Administration Operational Lease Any set of standards set forth and enforced by a local government agency for the protection of public safety, health, etc. For example structural codes, HVAC codes, Handicap Codes and fire codes In 2004 for the construction divisions were expanded from 16 division to 50 divisions . The MEP ( Mechanical Electrical Plumbing) were expanded. Combine aspects of both capital and operating leases. An example of a combination lease is a capital lease that incorporates a cancellation clause, typically associated with an operating lease. Building Codes Veterans Affairs Loans served in military does not loan money backs loans from private lenders basic entitlement capped @ $144,000 no down payment funding fees 1.75% to 3.3% 100% financing of sales price A dishonorable discharge will disqualify a veteran from the loan program. Brought to you by: Mr. Michael Bell Ms. Darion Forrest Ms. Iesha Roberson Sale & Leaseback Agreement Pros Comfort Saving Money Cons Spending money Not as safe Grandfathered? One party purchases property, equipment or land from another party and immediately leases it to the selling party under specific terms. Sellers: individual investor, a limited partnership, an industrial firm, a leasing company, a commercial bank or an insurance company. Type of capital lease, with the only difference being that a buyer purchases a used asset instead of a brand new one does not lend money provides government backing HUD (Housing and Urban Development) fixed-rate mortgages minimum down payment 3.5% moderate to high debt-to-income ratio (more to mortgage payment than other needs) each case reviewed individually, no comparisons no stated credit score requirement upfront mortgage insurance premium The "go to" product for borrowers with blemished, moderate debt-to-income ratios and for those who don't have a lot of money for a down payment. USDA Farm Service Agency farm ownership loans farm operating loans microloans emergency farm loans (prod & phys) Small business Lacking capital Build credit Mortgage Why Use Loan Progams? Conventional Loans Also known as finance leases The borrower has full control over the use of the asset(s) during its lease period Borrower is responsible for all maintenance and other associated costs and is directly affected by its associated advantages and disadvantages. Synthetic Leases Agricultural Loan Programs Existing Building Codes In simplest terms, it means if you have a situation before a new law or ordinance is in place, if you are not required to comply to the new change, you are "Grandfathered" in for that new requirement.
Prezi Present
Prezi Video
Prezi Design
