Financing Co-op’s & Condo’s in the Aftermath of the Credit Crisis

Presented by Shaun Meller – 5.0 hours

  1. The Current Lending Environment Overview (30 minutes)
    1. Trend of Housing and Homeownership
    2. Mortgage Foreclosures and Delinquencies
  2. Shopping for a Home: (40 minutes)
    1. Mortgage Affordability Estimate
    2. Explanation of Lender decision criteria
    3. Prequalifications versus Preapprovals
  3. The Mortgage Process (60 minutes)
    1. What to expect at the First Meeting
    2. Applying for a loan – documentation
    3. Qualifying for a loan, Part I – defining income and assets
    4. Qualifying for a loan, Part II – credit
  4. The Mechanics of a Payment: (45 minutes)
    1. Reviewing an amortization schedule
    2. Principle versus Interest
    3. After-tax payment
    4. The effect of additional payments
  5. Different Categories of Mortgages: (45 minutes)
    1. Fixed Rate Mortgage
    2. Adjustable Rate Mortgage
    3. Interest-Only Mortgage
    4. Other Mortgages:  Balloon/Negative Amortization
  6. Alternative Financing: (20 minutes)
    1. Home Equity Lines of Credit
    2. Home Equity lines versus Home Equity loans
    3. Reduced documentation and No Documentation loans – Phased out
  7. New Rules for Condos and Co-ops: (60 minutes)
    1. How it effects most lenders
    2. Specific guidelines
    3. Co-op documentation requirements