Posted on: 09th Aug, 2009 02:56 am
what is the meaning of wrap-around mortgage? what are various pros & cons of it?
A wrap-around is one type of seller-financing. Wraparound mortgage also known as an all inclusive trust deed, which allows you to purchase property without having to qualify for a loan or to pay closing costs
Right now only FHA and VA loans are assumable without the permission of the lender.
Other fixed-rate loans carry "due on sale" clauses, which require that the mortgage be repaid in full if the property is sold. Due-on-sale prohibits a home purchaser from assuming a sellers existing mortgage without the lenders permission. If permission is given, it will always be at the current market rate.
it is important to know that some states do not allow them. You will need to check that out before proceeding with one
Right now only FHA and VA loans are assumable without the permission of the lender.
Other fixed-rate loans carry "due on sale" clauses, which require that the mortgage be repaid in full if the property is sold. Due-on-sale prohibits a home purchaser from assuming a sellers existing mortgage without the lenders permission. If permission is given, it will always be at the current market rate.
it is important to know that some states do not allow them. You will need to check that out before proceeding with one
A wraparound mortgage can be an excellent way to obtain commercial property with little business credit history.
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Check the good post from Sam
http://www.mortgagefit.com/wraparound.html
Good luck and feel free to ask
http://www.mortgagefit.com/wraparound.html
Good luck and feel free to ask