Mortgage and Refinancing

The unique living situation in the Grove also means entering into a “leasehold” property agreement with the University of Minnesota. When homeowners (current and future) shop for a mortgage or home equity loan with a mortgage company or bank, the Grove lease will probably raise questions to loan officers unfamiliar with this arrangement.

In general, and upon the advice of lenders and the University’s Real Estate Office, always let your potential lender know immediately about your leasehold property and have a copy of Exhibit C in the Grove lease available to them.

According to Sue Weinberg from the University Real Estate Office, “The Repurchase Agreement (Exhibit C in the Grove land lease) is typically executed only with the mortgagee which provides the first/primary mortgage financing (as that is typically the only type of loan that would meet the requirements of that agreement).”

Advice from mortgage expert and Grove resident Mike Hamerski:

  • Not all loan officers understand the leasehold process.
  • Rate is not always the deciding factor in a mortgage transaction.
  • Companies change policies: The underwriter is the interpreter of the lease. Institutional representatives, managers, and underwriters change continuously. You might have an “okay” 6 months prior from an institution, but this doesn't ensure you will get the loan when you need it.
  • If a loan officer or company representative says they can handle leasehold loans, do not assume anything. A loan can be rejected at any time in the process if someone in the institution objects and is afraid to commit.
  • An informed loan officer can walk the institution and the underwriters through the lease and be able to supply all of the necessary contacts with their company, the University, PMI companies, their underwriters, title companies and their examiners, etc.

Here is a list of potential lenders*:

Mike Hamerski (Grove resident)
As of 2011, he has conducted 6 purchase and 11 refinance transactions in the Grove.
Guaranteed Rate
VP Mortgage Lending
2550 University Ave, Suite 250-S
St. Paul, MN 55114
C: (612) 298-1020
mike.hamerski@guaranteedrate.com
guaranteedrate.com/MikeHamerski
NMLS ID: 332589

Sunrise Banks (located on the corner of Como and Doswell)
James M Iacarella
VP Mortgage Development Center
NMLS# 343004

Rich Kusick (refinanced 2105 Folwell in summer 2011)
President
MN Residential Mortgage, Inc.
Ph: (651) 797-4090
Fax: (651) 797-4092
www.mnresidentialmortgage.com
NMLS ID: 179278

Todd Wagner (refinanced 1587 Burton)
Senior Mortgage Banker
Envoy Mortgage
Office: (763) 225-6307
Fax: (763) 225-6335
twagner@envoymtg.com
NMLS ID: 327294

*The UGHA or UGIO does not endorse any person listed as a resource or source.