I have a 1st mortage and a HELOC and unfortunatly have run out of funds to complete my project (maxed out the HELOC and Credit Cards). I've got less than $10,000 worth of work left on the house and would like to refi, but the broker and lender I'm working with told me that I have to complete certain things before I can refi (ex: countertops in the kitchen, trim work and some drywall work).
I thought I've heard of people refinancing in the middle of projects. Am I wrong?
2006-12-23 13:11:58 · 3 answers · asked by jhousnet 1 in Business & Finance ➔ Renting & Real Estate
yes, but you must show them the plans and models of what it will look like and get a real estate agent to give you an idea of what it could be worth on the open market
2006-12-23 13:14:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Yes you can as unfinished work can become cost to cure items and funded as soon as completed and verified. The appraiser cannot unless it is a rehab loan give value for an idea. They can only appraise based on the condition at the time of the appraisal. A rehab loan can allow the appraiser a bit more lattitude. Your key issue will become the end loan to value for the finished house. Your contractor should be able to finish the project and be paid from escrow as long as you have a firm loan commitment from the lender. I have funded loans of your type and have also been paid from escrow as a contractor. You will want the contractor to bill escrow and not do a lien on title at last minute as that will just waste time clearing up the new cloud on title. Your mortgage person should know how to deal with that issue for you.
2006-12-23 21:22:29 · answer #2 · answered by Kevin H 4 · 0⤊ 0⤋
Absolutely; I know about 30 loan officers at different companies that could help. Shoot me an email with some contact information. williamsandlin2004@yahoo.com
2006-12-24 11:33:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋