docmirror
Touchdown! Greaser!
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- Jan 5, 2007
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Cowboy - yeehah!
So, I'm buying another house, the loan company wants to know if it's a second home, or an investment. I tell them I'll make it a second home. They require insurance of course, so I get a quote for a homeowners policy, just like my primary. They look at the place, location, amenities, and my portfolio and THEY decide it's not a second home, but an investment property for commercial use. OK, so they are going to add 1 discount point up front to the loan we agreed on.
I said fine, and changed the insurance to a fire/liability policy which covers the structure but not the contents, and extra living place in case of damage, and all the other stuff that homeowners policy covers. They then call back and say I have to have homeowners policy on the house. WTF? If it's commercial, and rented, why would I have homeowners? In fact, my homeowners policy on my primary specifically excludes commercial use. This is the nuttiest loan company I've ever dealt with.
So, bottom line, they want to charge 1 percent for a commercial loan, and they also require I get homeowners insurance which is significantly higher than the fire/liability.
I said fine, and changed the insurance to a fire/liability policy which covers the structure but not the contents, and extra living place in case of damage, and all the other stuff that homeowners policy covers. They then call back and say I have to have homeowners policy on the house. WTF? If it's commercial, and rented, why would I have homeowners? In fact, my homeowners policy on my primary specifically excludes commercial use. This is the nuttiest loan company I've ever dealt with.
So, bottom line, they want to charge 1 percent for a commercial loan, and they also require I get homeowners insurance which is significantly higher than the fire/liability.