Sentences with phrase «buyer defaults on the loan»

The lender wants to be sure its investment is covered in case the buyer defaults on the loan.

In this type of government loan, the Federal Housing Authority insures the lender against loss in case the home buyer defaults on the loan.

Not exact matches

In short, home buyers who make smaller down payments (0 % — 5 %) are more likely to default on their loans.

Also, because many Excel buyers were first - time auto buyers and higher credit risks, there were many defaults on Excel loans.

• VA Funding Fee — A fee paid by a buyer or seller to insure the lender against loss through default on a VA loan.

The Canadian Mortgage and Housing Corporation provide mortgage loan insurance to lenders in case buyers default on their mortgages.

This theory, based on the assertion that home buyers with little personal investment in their homes stand to default on home loans at a higher rate than those who've made the 10 % to 20 % down payment plus closing costs required for conventional mortgages.

Defaulting on federal debt can force would - be buyers to wait three years before being eligible for a VA - backed home loan.

Of course the «grave - robbers» do well; gold buyers, auctioneers, pawn shops, repo firms; these guys eat well when other people are defaulting on loans or have to sell their stuff for fast cash.

Although FHA doesn't directly lend money for mortgage loans, it guarantees its approved lenders against losses stemming from defaults on mortgages approved under FHA guidelines; its lending programs assist first time, credit challenged, and moderate income buyers.

In short, home buyers who make smaller down payments (0 % — 5 %) are more likely to default on their loans.

The home buyer, unless they are paying cash, also really doesn't have an interest because they can stop making payments and defaults on the loan.

These types of loans generally have lower interest, but are reserved for buyers who pose virtually no risk to the lender (a billionaire probably won't default on a payment).

If you acquire a FHA Loan to purchase a home, the FHA is not actually lending money to you, the buyer; the FHA simply guarantees the lender in case you, the borrower, default on your mortgage payments.

Home buyers with lower credit scores are statistically more likely to default on their loans.

Moreover, something that gets lost in the arguments about credit quality is that the second - best predictor of mortgage default was how much skin in the game these buyers had, and even if Canada is not as risky as the US on lending to people with poor credit scores, we are awash in high loan - to - value lending (with its explicit government backing).

(This insurance doesn't protect you, the buyer, but the bank should you default on your mortgage loan.)

This protects the lender should a buyer default on the home loan.

When a buyer purchases property «subject to mortgage», the buyer agrees to assume the remaining debt on an existing mortgage, but the original homeowner remains on the loan and, therefore, remains personally liable for the debt should the buyer default on making the monthly payments.

FHA loans appeal to first - time buyers and lower - income borrowers, who are perceived to be more likely to default on a loan, Norris says.