Two Homes On One Property: 7 Tips on Getting a Mortgage Under Uncommon Circumstances
Seven tips on getting a mortgage under uncommon circumstances will help you purchase two homes on one property. Purchasing a property with two homes may be a challenge when it comes time to get it financed. Since the value of a property is based on current prices of comparative homes on the market and sold homes, finding a comparable to compare to can be difficult with two homes on one property. Even appraisers find a property with two homes more difficult to valuate and if the property has outbuildings, even though they have value, may not be able to be included in the final valuation that will go to the lender.
Points, APRs, and Other Homebuyer Fees
WHAT ARE POINTS? Points are fees your lender charges, usually 1 or 2 percent of the total loan amount. It's important to factor in points when shopping for mortgages as a loan with a higher interest rate and no points could ultimately be cheaper than a lower interest rate with points. It’s also possible to negotiate that the seller pays points.