Bloomberg reports:

“The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan increased 4.7 percent to 1,250.6 in the week ended April 3, a fifth straight gain, from 1.194.4 the prior week. The group’s refinancingpurchase measure jumped 11 percent. gauge rose 3.2 percent and its

The increases mean Federal Reserve efforts to lower mortgage rates and boost lending may succeed in preventing housing from slumping further.”

Unfortunately, more applications don’t always result in more mortgages. As we’ve seen during the past year, taking out a conventional loan can be very difficult in this market.

photo credit: TMAB2003

See Also:

Non-Conforming Bank Loans

So, here’s an unusual story. Several years ago a Missouri family purchased a cave using partial seller financing and turned it into their home. Now that the economy has turned everything upside-down, they’re looking to sell.

cnet reports:

“The cave cost $160,000, of which the Sleepers put down half. The other half they borrowed from the people who sold them the cave. (No, they were not called the Crusoes or the Robinsons from Switzerland.) It was a five-year loan with one so-called balloon payment at the end, which would be this May…

Sadly, with the banks in a self-induced coma of convenience, the Sleepers are unable to refinance. Mr. Sleeper, a computer consultant, told ABC News: “Right now, banks are not interested in anything odd.” There is, indeed, nothing odd about taking taxpayers’ money to cover for decisions made in large echoing heads.”

Creative financing helped them purchase the cave turned house. But, taking out a traditional mortgage is difficult for everyone right now – not to mention people in such uncommon circumstances. Perhaps with the media attention they’re beginning to attract, the family will be able to find an alternative to a quick sale.

(The photo accompanying this story is of a “generic” cave. But, be sure to check out the family’s Ning page. They have some pretty amazing pictures of what they’ve done with the place).

photo credit: JacobEnos

See Also:

Seller Financing Guide

The Seller Financing Process