I am trying to buy a home, very complicated situation, have debts that aren't mine, I would like to do an 80% (All I have to pay for the home is approx 75% of the appraised value) no doc loan, then after I close, take out a equity loan or HELOC for the remaining equity in the home to pay off my current home and debt , is this possible??? Thanks!
2007-01-01 14:39:33 · 4 answers · asked by Paul D 2 in Business & Finance ➔ Renting & Real Estate
My suggestion would be to contact the local, small bank in your area first....not sure how you are going to pay 75% of appraised value, if you can, great! You cannot go to closing with no docs. If you buy the new home, you probably have to have the old one paid off, otherwise you can't get a loan. The only way you can do a heloc is if there is enough equity in the home to support that, if you are only paying 75% & if the appraisal is 25% higher than that, & if your income supports it, it shouldn't be a problem. Just watch your interest rates & closing costs! Good luck!
2007-01-01 14:46:25 · answer #1 · answered by wondering... 2 · 1⤊ 0⤋
For the purchase of the new home, technically you would not be getting 80% financing. Mortgage lenders lend money based on the LESSOR of the appraised value or contract purchase price. Therefore, you would be getting 100% financing for the loan, even if you truly have an instant 20% equity position in the home. The reason this is important is because the rates on 100% financing are slightly higher than on loans where you make a true down payment.
Another important point, if your plan is to buy your new home while still owning your current home, if there is a mortgage payment on your current home you will need to be able to carry two mortgage payments for loan qualification purposes.
2007-01-01 23:03:51 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Your likely hurdle to overcome will be that of the underwriters using purchase price or appraisal value, whichever is lower to establish the loan to value. The no doc refers to your personal qualifying info, not the transaction value.
2007-01-01 22:47:27 · answer #3 · answered by Kevin H 4 · 0⤊ 0⤋
I know a loan officer who can help you. Email me for more info or fill out the form at:
2007-01-01 23:35:32 · answer #4 · answered by Anonymous · 0⤊ 0⤋