Dan McKenzie, Options Mortgage Services, Alpharetta

Here is a simplified breakdown of what we look for when we look at Property:

1. Clear Title((ALTA endorsement 9)
2. Appraised Value
   1. LTV(loan to value) is based on the lessor of the Contract Sales Price of Appraised Value
   2. As is Appraisal or are there repairs required
   3. Property Condition Rating must be better than C5/C6(In need of Significant repairs)
3. Hazard Insurance Coverage
   1. Must cover Estimated Cost of Reconstruction, or; the outstanding principle balance of the loan.
   2. Maximum Deductible is $1000
4. Flood Insurance – If property is in a flood plan, Federal Flood insurance is required
5. Occupancy Types
   1. Primary Residence
   2. Second Home
   3. Non-Owner Occupied
6. Property Types
   1. Single Family
   2. Condominium/Town-home
   3. 2-4 units
   4. Modular Homes
7. Ineligible Properties – here are few examples
   1. Cooperatives
   2. “Kiddie” Condos
   3. Mixed Use Properties
   4. Non-Warrant-able Condos
   5. Properties requiring Repair Escrows
   6. Properties with Environmental Hazards
   7. Unusual Architectural designs(geodesic domes, subterranean homes)
   8. Safety issues
   9. Working Farms

This is just a brief overview of the Conventional Loan Guidelines surrounding Property, and outlines the items that I see that cause us angst in the day to day mortgage process.