can you get home loan and a home inprovement loan at the same time?

Answer 1

Hi Kory!

Yes you can. If you live in the US, you may be able to get an FHA loan that will allow you to borrow money on the appraised value of your home after your improvements. You might also consider obtaining a regular mortgage and a home equity line of credit (HELOC) or if you're purchasing, you may qualify for a HELOC to use as the purchase.

I hope this answers your questions. Please contact me at [e-mail], if you'd like further information.

Answer 2

Yes you can, as long as you are not over the appraised amount. If you are buying the home, and you are at 100 percent of the asking price, and the asking price is the appraised value - than the answer is no - but if you have excellent credit, and have what lenders call disposible income (normally 2,000) after debit than you can always do a re-finance of up to 125 Percent of the appraised amount. I do not recommend going over the appraised value, with market conditions the way they are in some area's (depends on where you live, and if the value will go up after the improvements) There are alot of factors to consider. Your income, job time, and debit ratio... You can also get a Home Equity line of credit, with your home loan, and use the Equity line when needed. You do not need to take out the full amount (say 20,000), but use the money when you need it, that way you are not making payments of the full 20,000 until you decide to use it. (again for a line of credit, and for a higher LTV, you do need pretty good credit).

Other Things to consider when you are purchasing a home loan:

Lenders look at the middle score to qualify a person - With a 580 or higher you can get a 100 percent loan. If your credit is low, than you will be going SUB-Prime, and any amount over 80 percent does not have MI - There are alot of companies I underwrite for that does NOT charge MI - normally the rate is slightly higher. Say you got qualified and your rate was 8.50 at par (Par, means that is what rate the lender quotes you, with no addon's to the rate for the lender to make pts on the back - some Lo"s add pts on the rate to make their money - instead of charging it up front). The 8.50 does not have MI included. This is a estimate only - ok -


If you go with a FHA loan, FHA has MI included. (With a 580 + you will be going sub-prime the rates are higher by about a 1 percent, but you have no MI. (MI is mortgage insurance in case you default on the loan, it is a way for lenders to have added insurance. It is not the same as Home Owners insurance, ok) VA loans do not have MI insurance.

Conforming A+ borrower's loans have MI included, but the rates are better starting in the mid to high 6's (with rates going up.) The more money you borrow - the higher the rate normally. There are a lot of factors involved.

With a government loan - collections and judgements will have to be paid (most ppl do not know that) but for FHA it is true....

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.


Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

Decided on the type of program (loan ) you are wanting. A 30 yr fix is still roughly at a 6.5 rate right now - but if you are needing a 90 percent ltv the rate is around 7 percent and a 95 ltv is 7.375 and a 100 percent rate is 7.5 ( This is a estimate only, since I do not know what your credit score's are....There are also, interest only loans - adjustable loans, option arms (where you pick the payment, from 4 payments, including interest only). Interest only are lower payments, but nothing is being paid on your home. Some self-employed ppl like the payment options, in a lean month when money is tight., they can pay a lesser amount.

http://www.fanniemaefoundation.org/...

http://www.fha-home-loans.com/

http://www.freddiemac.com/


Hope this helpes, and good luck to you

Answer 3

You need to close on one and then the other....but this doesn't make sense as you wont have any equity. You can get a rehab loan which includes the purchase as well as a budget for repairs.

Answer 4

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Answer 5

Yes

Answer 6

usually not at the same time .

Answer 7

YES YOU CAN JUST ASK YOUR BANK ABOUT IT.