| Certain lenders have set policies about the types of | | | | noted this problem and have grown tired of taking the |
| loans that they will lend money for. One would think | | | | brunt of it. |
| that any lender would be in the business of lending | | | | Some lenders are not willing to finance real estate |
| money, but some feel that some ventures are just not | | | | transactions that will result in the property being used |
| safe enough to risk losing money on. A person that is | | | | for investment purposes. Perhaps this is one reason |
| self-employed would think that they could get money | | | | for the housing sales shortages we are experiencing |
| to grow their business, but if they have operated the | | | | today and why homes are remaining empty and |
| business for less than two years, there are many | | | | unoccupied. Lenders avoid any type of financing for |
| lenders who will pass up on the opportunity to help | | | | property that will be used for generating any type of |
| them. | | | | income and this type of policy is why some farmers |
| Some loan companies are just not equipped to deal | | | | are losing the farms that they have worked for |
| with the large amounts of money that would need to | | | | generations. |
| be loaned to secure land. The use of the land or the | | | | Some lenders are avoiding new property owners who |
| credit history of the buyer is not even considered in | | | | need a construction loan. The lenders are taking a |
| the equation. The loan companies have drawn the line | | | | view that if the property is being financed, then the |
| on how much capital they have to lend and all major | | | | owner should wait until it is paid for to get more money |
| land deals, some exceeding only 10 acres or more, will | | | | to build. Some undeveloped properties remain in limbo |
| become the victory of another loan executive at a | | | | until the real estate loan is paid in full, and by that time, |
| lending institution large enough to wheel and deal. | | | | the property owner has lost out on options to turn a |
| One of the hardest loans to obtain through financial | | | | quick profit by building and selling a home and |
| lenders such as banks and credit unions is a mobile | | | | establishing a reputation as a quality home builder. |
| home loan or one for a manufactured home. The | | | | If a person seeks a loan to refinance property they |
| scarcity of lenders has placed mobile home buyers in | | | | own, there are some lenders who will deny the |
| a predicament where they are literally forced to | | | | request if the property has been placed on the real |
| finance mobile home purchases totally upwards of | | | | estate market to be sold. The reduction in an interest |
| $43,000 at a high interest rate than is offered to home | | | | rate may be just what the property owner needs to |
| buyers of residential units located somewhere in | | | | break even on the sale of the property, and if they |
| suburbia. Fair housing practices are not met when | | | | cannot get it, some feel it is best to take it off the |
| financing mobile homes and displaced refugees have | | | | market to meet the requirements for a specific lender. |