Homes in desperate need of repairs are also obviously difficult to insure. While the idea of buying a “fixer-upper” might be appealing to some buyers, the cost of insuring a house that is falling apart can sometimes be too off-putting for lenders to handle. Mobile homes are also difficult to insure, due to the fact that the structural integrity of a mobile home is weaker compared to a traditional home. One heavy storm could completely destroy a mobile home, while a traditional home would survive without issue. All of these factors need to be taken into account by your loan officer. This chapter is filled with limitations, problem areas, and red flags for the many different types of loans and property purchases.
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