If that house had a mortgage then the lending bank almost certainly required the use of one. If it had a construction loan it too probably required a title search and certification.
I could be wrong, but I thought you couldn’t get a mortgage for a house that isn’t already in a livable condition. That would have come after the thing was completed.
In the US this could be done with a short term variable loan called a construction loan that releases money in stages as the build progresses. Once finished if it’s not being paid off it would be refinanced into a more traditional mortgage. Mortgages are often pretty different in the US vs UK, most US mortgages are for fixed rates for 30 year terms whereas most UK mortgages are fixed for a much shorter period and then go to variable rates. So you’d be hard pressed to get a bank to agree to a fixed rate 30 year mortgage for a house that doesn’t exist yet.
Developers don’t mortgage individual houses, they were still trying to sell the house to someone according to the video, and offered to sell it to her at a discount.
If that house had a mortgage then the lending bank almost certainly required the use of one. If it had a construction loan it too probably required a title search and certification.
I could be wrong, but I thought you couldn’t get a mortgage for a house that isn’t already in a livable condition. That would have come after the thing was completed.
It may not be the same in the US, but in the UK, you can mortgage a new build project.
The company releases money in stages as the build progresses, normally.
In the US this could be done with a short term variable loan called a construction loan that releases money in stages as the build progresses. Once finished if it’s not being paid off it would be refinanced into a more traditional mortgage. Mortgages are often pretty different in the US vs UK, most US mortgages are for fixed rates for 30 year terms whereas most UK mortgages are fixed for a much shorter period and then go to variable rates. So you’d be hard pressed to get a bank to agree to a fixed rate 30 year mortgage for a house that doesn’t exist yet.
Developers don’t mortgage individual houses, they were still trying to sell the house to someone according to the video, and offered to sell it to her at a discount.
Again, all in the video with all the answers :)
Montgomery Burns Slant
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