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Archive for September, 2015

Unconventional

Unconventional.

That’s the word my credit union and two banks used to describe my request for a mortgage on my new home.

They were talking about the house, not me. (But that word has been used to describe me before.)

The issue they have is that I have to pay for my house before the builder delivers the shell. Once delivered, I will have the electrical wires run and the plumbing installed, then the builder will come out and finish the interior, except for the flooring, kitchen cabinets, and bathroom fixtures, which I’ll either do myself or have someone skilled to do them for me.

Unconventional. They like to give money for completed structures. Mine’s not finished at the time the money is due.

Unconventional. They appraise the value of a home by looking at sales of comparable homes in the area. There are none.

“We don’t have anything that can help you,” two loan officers told me.

“Not a problem,” I said to no one in particular.

While heavy debt can be a burden, good credit can cover a multitude of sins.

Because I have paid off the heavy debt load I had four years ago when the divorce was final, my credit rating is in the highest bracket right now. I have no outstanding credit card balances and get offers for new credit cards and signature loans in the mail all the time.

So I got a signature loan this week to pay for my house through one of the loan offers I got in the mail.

It’s a 5-year loan, but I’ll pay it off in less than four. In a month or two, my FICO score will drop a little, but not enough to cause concern. Come January 1, I won’t have rent to pay and my loan note is 20 percent lower than I pay for rent right now.

The loan is an unsecured loan, which means it’s not tied to the house. So when I pay the builder and the house is delivered, it’s mine. No liens attached. I can sell it any time I want to. (I don’t want to.) I have 100 percent equity in it.

It’s just like my land, which belongs to me. I have the deed although I still have 3 years left to pay for the signature loan I took out to buy it.

Unconventional? That works for me.

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