Quote:
Originally Posted by Leoskeys
Hello,
I already have a home on the lake, but I'm trying to help a friend who is considering buying an island home. Anyone know if the mortgage process is different? And if he wanted one loan to cover buying home, boat, and upgrading home, can that be done with one loan versus two or three different loans?
For an "easy math" instance, home price of $300k, $50k for boat, and $50k for improvements. Do you think he can get one mortgage for $400k?
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Getting a mortgage on island property is not different, the process is all the same, HOWEVER....
Save yourself some trouble and advise your friend to discuss his mortgage with a local bank and don't try to go after a loan with a broker or big bank who are not adequately familiar with underwriting a seasonal island property. I ran into this with my mortgage broker, the deal eventually got done but not before dealing with some unnecessary heartache finding out a week from closing they would not close on the loan until they had a buyer for the mortgage all lined up and they did not typically service these kinds of loans. I was furious since had I known that AHEAD of time I never would have engaged them in the first place. That could very well have spelled disaster on the deal since the seller could have easily walked away instead of giving us an extension to get the loan done.
Had I known better I would have gone to Meredith Village Savings Bank, they are great to deal with and get the whole island property thing.