Lender Discriminates Against Ugly House

In this era of political correctness, we have just encountered one seemingly unprotected class – houses. Yes, just today one of our lenders declined a loan for an investor client because the house lacked “curb appeal.” That’s like when your friend wants to fix you up with someone who has a “great personality.” It’s code for fugly.

It's Got a Great Personality

It’s funny, yes. But also a little alarming. This just isn’t any lender. It’s the only lender in the country that makes non-recourse loans to purchase property with your self-directed IRA. So that literally means that this client can’t purchase the property. And it’s a cash flowing duplex.

I admit the landscaping is non-existent. And it looks like Earl and Randy live there right next door to Darnell and Joy but, c’mon. When a lender can deny a loan on a cash-flowing income property just because it’s not going to win a beauty contest any time soon, things are getting a little crazy.