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You are right. They can make conditions. If they want us all to have white houses with green shutters then they can do that. I get it.
You missed my point, I think. I'm not sure I understand why you are being defensive. Is this a bankers forum I've stepped in? I'm fairly new to the city-data and mean no disrespect.
I appreciate being able to have banks. I simply wanted an honest explanation. I have gratitude for all I have. I don't even mind having debt if it means having a home. It would be even better to be financially independent though and not be in debt. Regardless being a borrower is no way a lowly place!
I'd like to keep some of my rights to choose the heating I'm most comfortable with without sacrificing my right to use the money borrowed for my own purposes. I was hoping that someone here could empathize and perhaps let me know of a loop hole. Thanks to those who understood and explained as best they could.
Am I in the wrong forum? Perhaps if it was the color of the house in question you'd comprehend this.
I'd like to be treated with respect for money I'd be PAYING to borrow. There's no gift from the bank. We pay every penny back and then some. On some level aren't we part of the whole lending business, especially when the monies are federal? Is our interest paid without value? Guess the bank we've done business with spoiled us as we've always had freedom to choose the next project with them be it a roof, a barn or septic system.
I'll leave you to your forum. thanks for your help.
The monies aren't federal from Fannie Mae. They are BACKED by the federal government, its not the same thing.
Sorry that you'll have to update, while my husband's family relied on a woodstove in N. Michigan, they also had an oil furnace that they kept ready to go. I think for the majority today's buyers, a house without any source of heat other than wood might be a red flag - and that's why the banks don't want to lend. If you default (and they have to assume you might, because they assume everyone might) they now have to sell your house - and they don't want potential buyers to say "But it has no furnace!"...
Good luck.. hope you're using the refi money for something fun!
I realize you like the type of heat source you are using, but when you go to a bank, mortgage company, etc.... these requirements exist for your protection as well as to that of future owners. You could take an equity line to upgrade your heating system. I am speaking on my experience as an underwriter for almost 30 years in the mortgage industry.
Last edited by Baby Bear; 11-29-2007 at 06:43 PM..
Reason: Left some info out
As an underwriter in the mortgage business over 30 years, the lender is correct in what they are asking for. It is to protect you as well as any future buyer of your home. It must meet certain standards in order for loan approval. You could always take a home equity loan to upgrade your heating system. Hope this helps!
You are right. They can make conditions. If they want us all to have white houses with green shutters then they can do that. I get it.
You missed my point, I think. I'm not sure I understand why you are being defensive. Is this a bankers forum I've stepped in? I'm fairly new to the city-data and mean no disrespect.
I appreciate being able to have banks. I simply wanted an honest explanation. I have gratitude for all I have. I don't even mind having debt if it means having a home. It would be even better to be financially independent though and not be in debt. Regardless being a borrower is no way a lowly place!
I'd like to keep some of my rights to choose the heating I'm most comfortable with without sacrificing my right to use the money borrowed for my own purposes. I was hoping that someone here could empathize and perhaps let me know of a loop hole. Thanks to those who understood and explained as best they could.
Am I in the wrong forum? Perhaps if it was the color of the house in question you'd comprehend this.
I'd like to be treated with respect for money I'd be PAYING to borrow. There's no gift from the bank. We pay every penny back and then some. On some level aren't we part of the whole lending business, especially when the monies are federal? Is our interest paid without value? Guess the bank we've done business with spoiled us as we've always had freedom to choose the next project with them be it a roof, a barn or septic system.
I'll leave you to your forum. thanks for your help.
Bottom line:
1. You have the right to choose what type heat you want.
2. A Lending Institution has the right to choose who and under what conditions they will lend money.
3. You then have the choice to:
3.1 Borrow money from the Lending Institution meeting those conditions.
3.2 Not borrow money from the Lending Institution.
It's a plain simple yes or no, either you want it or not. There's absolutely no difference in this than if someone came to you and asked to borrow $500. I believe you would insist that whomever is borrowing your hard-earned money would have to meet your conditions, not theirs or their preferences.
Not to worry. We can put in one of those high efficient gas furnaces that are put in rooms and vent out, at a much lesser cost than duct work and a boiler and it will qualify as central heat. Perhaps I'll come to like it during the coldest weather here.
I didn't want to borrow money only to have them choose the use before we got it, which partially is what they are doing.
I do my homework and I'm as frugal as they get but I want quality. I have to pay it back whether I take a vacation or build a barn. I prefer to pay cash for most things so being scolded for questioning the qualifications of a loan seems almost silly. I'm not living in a tent around a campfire with porta potties, I have a beautiful soapstone stove and have my wood cut split and delivered. Someone else might actually love my house with wood heat but none of us are allowed this preference, so we can't know how marketable it would be if it wasn't in the conditions for obtaining a mortgage.
Had something very special not come up which called for borrowing money we might have spited ourselves and let the loan go. The attitude that I should take it or leave seems harsh....as if it's YOUR money and as if I'm not worthy because I think differently. I'm glad the bankers I worked with are kinder.
I guess our priorities are very different from some people and as I said we like our warm home. This is where my 94yr. old neighbor slept when the power was out for a few days, the home where the heat was! This is the heating system not recognized. It hasn't failed us whereas furnaces crash all the time, sometimes within a year or 2 after a house is bought. The new furnace in our first home only lasted about 10yrs. which by my standards made it a heap of junk in the basement.
My conditions for borrowing my money would be very different than for what the banks consider risks so I don't think we should go there. Yes, I'm a small time lender myself at times as we have 4 young adult children. I would have made sure all that money they handed out went to qualified buyers, some of them getting counseling in money management and payment plans as soon as they get in trouble. Having started out with very little but showing we could pay a mortgage at 19 and 20yrs.old, after many rejections for a mortgage, I'd also look at an individual who was willing to invest themselves as a good risk, not just a high paying job.
I've used a credit union so perhaps it took better care of it's own than a profit bank might have. I believe that my money that sat in savings not only gave me higher interest but was used to help others like me who had a plan. I'm a business woman with a heart and believe in cooperation and honestly didn't think this would stir up so many "this is why" posts. I know they want my house to be valuable if I miss a payment. The thing is, I already believe my house is valuable and will make sure I do not miss a payment.
Thank you again. I appreciate all and will look more into "where" the money is coming from.
I've read that a Home heated solely by wood is now classified as "Non Conforming"
Certain areas of the country are already experiencing "No Burn" days. Many regions in California already ban construction of new fire places.
I've got a question... Are you certain the bank is requiring "Central Heat"
The reason I ask is that the same thing came up with some friends of mine on a vacation cabin they were looking at.
The problem was solved by installing a single inexpensive gas wall furnace. The 35,000 BTU gravity wall furnace along with permit and installation was less than $1000. They already had propane for water and cooking.
I imagine you could get an all electric wall heater or baseboard heaters if gas is not an option.
I would verify that a Central Heat system is indeed being required.
My home has gas central heat that was installed in 1923. Don't use it much, but it will keep the house warm and without any electricity.
This may be what we are looking into but the installation will probably cost us much more even though we have family in the heating business, unless we can hook up ourselves. We'll need 2 of these wall type furnaces that vent out and we're good to go. We already have the gas stove and dryer. Ideally I'd have the money for geo thermal but it seems that'll be another time, perhaps another place, because we are being rushed. Thanks for the suggestion though as it's just what I needed.
I think it's a great idea that they are managing the problem in Ca. Balance is best for the planet. I saw the windmills in Wales and was quite impressed with how far ahead they are in their concern for the planet. Wish we could all have these options at affordable prices.
honeybear - I'm not going to weigh in on the philosophical issues, you've set forth your point of view and others have addressed it. You've also gotten some terrific practical advice. I'll just offer a suggestion: before you install a new wall furnace or 2, you might just telephone a local credit union and a local bank - (it's getting harder to find a LOCAL bank or CU these days, isn't it?) You'll be able to get recommendations from friends if you ask around. I'd just want to pose the question to some local veteran lenders who may have knowledge of "portfolio" and/or non conforming or socially responsible mortgage products...The mortgage professionals here (I'm in VT, and there's a lot of interest in alternative and Green technologies here) have much experience, but it's just possible a lender in your particular area might have a program for you. In my area, being a Realtor, I wouldn't know for an absolute certainty if you'd be able to find the loan you'd seek - but I'd know which 3 mortgage people to call. You might call, explain the situation, and ask a friendly local Realtor or Real Estate Attorney for some names. There are specific LOCAL mortgage people I'd ask in my city...
We've dealt with our local credit union for the last 25yrs. and they are wonderful. Your advice is right on! The new bank is another credit union but on a federal level and they can give us the 30yrs. we really need right now, otherwise I'd find a way to stay with our trusted place as it simply deducts the mortgage from a paycheck and even gives us the bi weekly option which is another wonderful feature. The closing costs were also next to nothing. (about $200)
This loan has cost us a hard earned $2000 to close, including having an appraiser who worked for the bank. Not exactly objective or fair but I will use his crummy appraisal to my advantage at the town hall come tax time. Still, I can't believe we had to pay for this! I learned today at our attorney's office that banks will do this to keep the amount they can lend down or up the interest rate as they tried to do with us.
All in all we are fine with the option to put in the gas furnaces, something we learned of recently on our house hunting in Vermont. One man even told us he was going to put one in as the fuel was so expensive he wanted something that was the most affordable to actually use. Can't say the brand name but the are 93% effective.
Do you have an opinion on this type of heat for a home? May as well weigh in cause everyone from my brother and my husbands brothers have been giving their 2 cents.
We are coming to Vermont in the near future where I think we'll fit in nicely.
Will update you soon.
flat lander, even though we live in the hills
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