In the realm of mortgage brokerage, experience brings insight into the diverse array of transactions that come across the table. Every mortgage lender has its own set of preferences and aversions when it comes to accepting certain property types. To shed light on these considerations, we’ve compiled a list of property types that may pose challenges when seeking financing, drawing from insights provided by First National Financial. While every lender maintains a unique list, being aware of potential red flags can save you from unexpected roadblocks in your property purchase journey.
Problematic Property Types
The following property types are generally flagged as unacceptable by certain lenders, including First National Financial:
- Raw land
- Bed and breakfast properties
- Rooming houses
- Student housing
- Co-operative housing
- Properties with unresolved environmental issues
- Properties zoned industrial or commercial, including retail storefront properties with a residential apartment/loft above
- Former grow-ops
- Rental pools
- Operating farms
- Mobile homes
- Homes with electrical service less than 100 AMP
- Properties on First Nations Land
- Floating homes
- Properties with ownership/occupancy restrictions
Consult with Us Before Your Purchase
While the list provided by First National Financial serves as a general guide, it’s important to note that each lender maintains its unique criteria. Before venturing into unconventional property purchases, such as a converted church or a log cabin in a remote location, it’s advisable to consult with us. By doing so, you can gain clarity on potential financing challenges and explore tailored solutions that align with your real estate goals.
Understanding the nuances of acceptable and unacceptable property types is crucial when navigating the mortgage landscape. As experienced mortgage brokers, we are here to guide you through the intricacies of property financing. Before embarking on unique property ventures, reach out to us to ensure a smooth and informed journey. Our expertise and knowledge can help you sidestep potential obstacles, ensuring your property purchase is both successful and financially sound.
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