Fannie Mae loan risks?

We got sucked into a refi with an adjustable loan back in 2005 and now want refi into a fixed rate loan for a rental property. We are considering a 15yr fixed Fannie Mae loan cause their rates are more attractive than banks. However, it's difficult to lock in those their elusive rates since they fluctuate from day to day, unless those rates stabilize. There is a stiff prepay penalty, so it is basically a lifetime loan. We have no plans to sell, but we do have two kids heded for college within the next five years. We've never had a Fannie Mae loan before and wonder if there are risks that we don't know about. -Anon.

Construction Loan: good idea?

Hey, friends. My husband and I have just started a pretty extensive remodel, and we're already experiencing cost creep. Just thinking through our options, we're wondering about the wisdom of getting a construction loan to see us through the process and get all the work done at once, assuming we can afford the larger mortgage at the end. Alternatively, we may need to trim back our plans. My question to you is whether anyone has been through this process, any specific lenders who are good to work with, whether you thought this was a good way to finance a remodel and and any pearls of wisdom you might share. I'm also wondering if they will cover a major landscaping job or not, or if lenders limit the loans to the permitted constructions plans. I think I understand the application and mortgage conversion process pretty clearly, and understand about the lenders wanting to see permitted plans, check out the contractor and get a firm budget and timetable. So I don't need info about that stuff. Just looking for a sanity check on whether this is a stupid idea. Call Me Construction Crazy.

A construction loan is based on the final appraisal of your home after the remodeling is done. Let's say you bought your home for $500k. The construction is going to cost $300k. You would need to have an appraisal of at least $800k. They loaners like to have something around 10% leeway, so add that amount to the appraisal price. The loaners also want to have 3-6 months worth of mortgage payments (depending on the loaner), CASH, in the bank. This is so you won't fail on your payments and therefore screw the bank.

I doubt they would approve a landscaping loan (although they might approve something like a retaining wall), but you might get lucky. I had a hard time finding someone who would even talk to me regarding construction loans on an existing home -- most construction loans are for the building of a new home. Wells Fargo was very helpful but it ended up being too expensive for us to even consider. Hope this helps. Feel free to email if you have any questions. L

How to get a loan or grant for non-profit

I am looking for advice for a dance studio that has a non profit status, and needs help relocating in July. Looking for advice on obtaining a loan to purchase commercial property for a dance studio. Or advice about obtaining a grant. Any advice welcome, Thanks!

www.nonprofitfinancefund.org/

Nonprofit Finance Fund has provided financial and advisory services to nonprofit organizations in the San Francisco Bay Area since 1994. Our services are available to nonprofit organizations in Northern California.

Services Most of our clients have been in existence as 501 (c)(3) tax- exempt entities for at least three years, have at least one full-time staff person, and an annual budget between $150,000- $10 million.

We provide: *Loans for facilities and other growth-related projects *Nonprofit Business Analysis to help organizations assess their readiness for change *Workshops and advice on facilities and financial planning *Planning guides on facilities and financial management *Systems Replacement Plan to help nonprofits prepare for long- term maintenance and annual facility investment needs

Best of luck from a BPNer who also writes grants, J.