Comparison of Lender Title Policies

Policies and Products

Product Offered Coverage Provided Uses And Restrictions Cost ($250,000 Loan)
ALTA 2006 Loan policy Full coverage insures lien position, insures against record and off-record matters Best for purchase $ and refinance of 1st position liens, and for construction loans $525 refinance or purchase; $1400 for construction or cash equity loans (sliding scale)
ALTA Standard Loan policy Insures lien position, coverage against recorded matters only Commonly used for seller-financing and 2nd/equity loans; not recommended for construction or 1st loans $933 (equity/2nd loan only); $100 if combined with property purchase – residential)
(sliding scale)
Junior/Limited Loan policy Coverage limited to “apparent owner”, insures against “enforceable” liens Can be used for any position loan on residential property only; limit $250,000 (LLP); $500,000 (JLP) $125 up to 250K flat fee
Limited search No title insurance coverage – report only – commonly used for HELOC loans Residential property only; shows apparent owner and D/T’s & Agreements last 10 years only $75 and up
LTAA #10 Modification/Bringdown Insures priority of subsequent advances/term modifications of existing loans Best if lender prefers to modify existing note rather than creating a new 2nd lien Call for pricing
LTAA #21 Modification/Bringdown Similar to #10 but must be used if legal description has changed Best if lender prefers to modify existing note rather than creating a new 2nd lien Call for pricing
LTAA #7 Increases insured liability amount on existing policies Usually used in conjunction with modification endorsement when additional money is advanced Call for pricing