How can I put buying a home using a “risk factor” loan in perspective?
A. We see risk factors most often in normal everyday things. Here are some examples. Car Insurance Companies rate your yearly premiums on your age, driving record, and type of car you own, Health insurance premiums are based on your sex, weight, height and other risk factors. The insurance for your home is based on the construction of the home, i.e. is it brick or frame. The risk the insurance company has to take determines the cost of the insurance. We take that into account and really never think twice about it. Helping good people who have faced the financial hardships and who are willing to do what is necessary to own their home is a worthwhile program.
