Mortgage Brokers Jackson Hole Financing
There are a few private Mortgage Brokers in Jackson and throughout the Rocky Mountain region that are able to do a great job financing a residentail property investment. Similar to regular bank lenders in the area, they immediately order a title insurance policy for review and hire a appraiser to determine the value of the property being financed.
We like DMF Financial Services in Denver Colorado. They process many loans in Jackson Hole and are very reputable brokers in the area. They qualify our buyers quickly and have access to many lending sources in Denver to get the job completed in a timely manner for most residential and condominium purchases. They specialize in jumbo loans which are often needed for properties over $400,000. Countrywide Mortgage is their preferred lender and is also familiar with the resort marketplace. A good mortgage broker can often shop a great interest rate and low discount points to compete against the local banks and save buyers money at closing.
We are cautious of many mortgage brokers not familiar with the area and recommend not using them if they do not regularly close loans with our local Title Companies. Many foreign lenders come into the area as they know it is a hot spot to make large loans and solicit the real estate brokers for business. These brokers usually are not at all familiar with the area and are not able to process the paperwork needed to obtain a loan properly. They often do not work closely with our appraisers as well. We also advise buyers to be careful of financing a property with their home bank in another region. These lenders may also struggle with getting loans processed in a timely manner for the same reasons.
Seller Financing in Jackson Hole
Seller financing in the form of a carry back by a seller can also be found more easily than people may think in Jackson Hole. Many sellers have a large equity position and a low basis in a property. They may not want to take a large capital gain and prefer to carry paper for qualified buyers, Sellers should seek advice from a certified Public Accountant on this method of financing to determine the feasibility and determine the tax liability on a sale with or without the seller financing. Sellers may be able to defer and off-set huge capital gains taxes and earn attractive interest on a loan provided to a qualified buyer. A buyer may be willing to pay a higher interest payment than a bank would typically charge in return for this private seller finance provision in a sales contract.
Seller financing is also a good leverage tool for a seller's Real Estate Listing Broker to obtain a higher or even full price offer from a buyer on a Jackson Hole property. Many buyers are also looking to obtain a smaller second mortgage financing from a seller to put less money down on a property if a First mortgage holder will agree to this at closing. The risk a seller has is that if a buyer does not make the payments, a foreclosure may be required to get the property back. This is the same recourse any lender has to be paid.
In most cases the seller is only required to pay tax on the interest earned on the amount of the mortgage carried. Usually a balloon payment with a no pre-payment penalty is provided to a buyer in this form of a Mortgage. If the seller is carrying 70% or more a first mortgage position is usually required by the seller.
Call our local field office at 800-687-1154 or Ron Miller directly at 307-690-6331. You can also email ron@jacksonhole.net directly for any questions or concerns you have.
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