The Benefit of a San Francisco, CA Mortgage Insurance Policy

First consider the truth about a San Francisco mortgage insurance policy. Yes, it was primarily conceived as a protection for the commercial lending institution. Lenders are hesitant to give out loans to untested borrowers. If a borrower attempts to qualify a loan with nothing to show for himself except confidence and a sheet of paper then one can hardly blame the lender for saying no. Most lenders want collateral and a lot of money upfront. This is why a 20% down payment is standard in San Francisco real estate. However, in a mortgage insurance policy, a third party insurance company gets involved and helps the lender by taking over some of the risk. The insurance company may reduce the amount of risk or eliminate it altogether, depending on its own investment. It's all up to the borrower now. If he or she defaults, then the lender doesn't lose much out of the deal at all. If the borrower pulls through though, everyone makes some money.

This is why lending institutions are far more generous to home borrowers when there is a mortgage insurance policy in place. It's uncommon to quicken the qualifying process or even allow homeowners into a mortgage with as little as 5% down. Repeat home borrowers also get to save a lot of money on their taxes. (Note: this type of mortgage policy is not to be confused with a life mortgage policy, a contract that ensures the paying off of a repayment mortgage following a policyholder's death)

If you have ever wanted to live in San Francisco but have feared that you wouldn't have the down payment necessary to qualify then a mortgage insurance policy may help you get started in leasing the home of your dreams. What can you say about San Francisco? As the song says, "you're gonna meet some gentle people there..." and who would have guessed they're in real estate?

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