Q. We are planning to buy a foreclosure and want to renovate it. The cost of house is between 300-310K and the cost of renovation will be around 30K. We are first time home buyers but we are going to put 20% down payment. We will still be having some money for the repairs and renovation. I am not sure it will be good to use our savings for this purpose. Can we add renovation cost in the mortgage and save with lower mortgage interest as compared to separate loan from the bank? What is the best possible way to finance this renovation project?
Thanks a lot!!!
Thanks a lot!!!
A. No you cannot add the costs. A mortgage lender will not give your more than 80% of the appraised value. No guarantee they will even give you 270K You need to see what the lender's appraiser says.
Has anyone bought a home using a Conventional Renovation Loan (not 203k-FHA)?
Q. I am in the process of purchasing my 1st home using a Conventional Renovation loan (Fannie Mae), we're not able to use FHA-203k b/c the home has not been owned more than 6 months by the owner. So, I cannot use this loan and understand that. I also understand everything about the Conventional loan and the process but this...After estimates and after the renovation has been done on the home I know they send the appraisor to check that the work has been completed.
When appraisor sees that the work is done, does your mortgage lender release the money to you?
Meaning, does he release the funds to you in your name? Or does he release the money to the company (the company you used to do the renovation) in its name?
If you've done this loan in particular yourself, I'd very much appreciate a reply.
Thanks for your replies in advance,
A desperate wanna be homeowner
When appraisor sees that the work is done, does your mortgage lender release the money to you?
Meaning, does he release the funds to you in your name? Or does he release the money to the company (the company you used to do the renovation) in its name?
If you've done this loan in particular yourself, I'd very much appreciate a reply.
Thanks for your replies in advance,
A desperate wanna be homeowner
A. Money was released into my checking acct. and I paid the contractor
Loans or Grants for starting a home renovation business?
Q. Hi, I'm wondering if there are any government grants, or loans available to people with less than great credit. I'd prefer the grant of course, even if it's something I'd have to pay back, but loan info would be appreciated too. I know every phase of home construction from the ground up to the roof, and I'd really like to start up my own business where I buy houses, renovate, and sell them. I know I'd be successful if I could just find a means to get started, does anyone know of any good way to get started? Thanks
A. You will see a lot of things online about getting grants.
They are all scams.
They will request a fee up front - and then you will get denied.
Grants are only given out if you are destitute, only through organizations like the salvation army or united way - they will have the contacts to the goverment agencies.
Grants are also given to people starting up a non-profit organization.
Don't go for online loans - again - they will take your money - and you will get denied.
/
They are all scams.
They will request a fee up front - and then you will get denied.
Grants are only given out if you are destitute, only through organizations like the salvation army or united way - they will have the contacts to the goverment agencies.
Grants are also given to people starting up a non-profit organization.
Don't go for online loans - again - they will take your money - and you will get denied.
/
my daughter stays in the family home, name is not on deed. can she get a home equity loan to do renovations?
Q. She wants to get a home equity loan in her name, to fix up the house. will she be able to do this or will we have to add her name to deed first as part owner, and what are the cons to her for doing this? She does not pay any rent, but is keeping it up and paying property taxes & insurance.
The home is deeded to me & my 2 brothers which we all have our own homes now, so she will probably continue to live there. we will probably let her buy it and count it as paid with the money from the equity loan. If one of us cosigns on the equity loan will it be possible for her to get it then?
The home is deeded to me & my 2 brothers which we all have our own homes now, so she will probably continue to live there. we will probably let her buy it and count it as paid with the money from the equity loan. If one of us cosigns on the equity loan will it be possible for her to get it then?
A. If you make your daughter part-owner of your house, she will have the equal rights as you do to do whatever she wishes on your house. In part, you will lose partial control of your own property. In addition, if something are to happen to you, the owner, then the bank can go after her to collect the debt.
If your daughter does not own a house, (and she doesn't), then getting a home equity loan is simply not available for her. You could get it and loan the money to her.
To further complicate the matter, if she makes modification/addition to the house, then she will have part interest in the house. What will happen to the house eventually? Will it be yours, hers, or both of yours? Inheritance come into play, too. Don't forget the tax consequence!!
My suggestion is to either to contact an attorney and find out all the consequences first, or keep it simple by you doing all the finance.
If your daughter does not own a house, (and she doesn't), then getting a home equity loan is simply not available for her. You could get it and loan the money to her.
To further complicate the matter, if she makes modification/addition to the house, then she will have part interest in the house. What will happen to the house eventually? Will it be yours, hers, or both of yours? Inheritance come into play, too. Don't forget the tax consequence!!
My suggestion is to either to contact an attorney and find out all the consequences first, or keep it simple by you doing all the finance.
Home Loan including costs for Rehab / Renovation?
Q. I am thinking of purchasing a gutted (to the studs) home in New Orleans (Lakeview area). I am looking for loan options that will allow me to purchase the house and pay for renovations (which I would do via job-by-job contracting).
I know a little about the 203k, but I hear it is very labor involving due to the inspections and restrictions, etc.
My local loan agent has offered me a loan for the entire project (which I am free to govern myself) for 10% down at 7.25%. And the interest only compounds on the money as you spend it. That seems like too much down and too high of a percent to me.
Any suggestions or input would be much appreciated!
More details:
I have excellent credit and have already qualified for a $300k loan at 5.75% or 6% with no PMI for a completed home. I am looking at a $120k home with about $100k in renovations.
I know a little about the 203k, but I hear it is very labor involving due to the inspections and restrictions, etc.
My local loan agent has offered me a loan for the entire project (which I am free to govern myself) for 10% down at 7.25%. And the interest only compounds on the money as you spend it. That seems like too much down and too high of a percent to me.
Any suggestions or input would be much appreciated!
More details:
I have excellent credit and have already qualified for a $300k loan at 5.75% or 6% with no PMI for a completed home. I am looking at a $120k home with about $100k in renovations.
A. Sounds like you have been offered a reconstruction loan, which should roll over into a regular loan upon completion of your project.
Get a second friendly mortgage banker's opinion - remember, the lender (and the Realtor) work for YOU!
Get a second friendly mortgage banker's opinion - remember, the lender (and the Realtor) work for YOU!
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