Fractional Financing: Not Offered by FannieMae, Freddie Mac or Most Lenders Which is a Rare Commodity.

Vacation Finance offers fractional home loan programs.

Birmingham, MI (PRWEB) June 9, 2006 -- Vacation Finance, America's First Second-Home Lender, expands its unique fractional home loan program, with improved interest rates and terms.

"The fractional business is booming, it makes good financial sense for the home buyer, they can own multiple homes at the price of just one cottage" said Jon Pedersen of Vacation Finance "there are fractional projects popping up in every major second home market in America, and we intend to to lend to all the best projects".

Bob Waun, CEO of Vacation Finance added in Crain's Detroit Business there must be "rare-air" for a fractional project to be successful.

Most lenders will not lend to fractional home purchasers because of the complicated effect on real estate title. When a 1/4 share of a condo is sold to the consumer, they receive both a deeded real interest of 25% of the property, plus a limited time use right. "This time use has often carried the "timeshare" stigma that is rapidly disappearing because timeshare is now a trillion dollar industry and widely accepted by the consumer and lending community as a good value" said J.H. Heck Fractional expert at Vacation Finance "we have studied the entire vacation ownership industry and understand the dynamics like no other lender, and we know how to get projects and consumers financed, with less hassles and more loan choices."

Presently, the major secondary buyers of mortgage loans, Fannie Mae, Freddie Mac and the major wholesale mortgage banks do not purchase fractional mortgages; and this is not expected to change in the near future. "We like the fractional paper because we understand it and the buyers who purchase this niche real estate, it is too small of an opportunity for large lenders, but a trend that is skyrocketing" said Waun "the same buyers of fractional real estate, buy fractional aircraft and yachts, we like these borrowers."

Vacation Finance www.vacation-finance.com is based in Birmingham, MI with operations in Florida and expanding ever major vacation home market through both wholesale and retail lending.

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