Is it possible to take a 200k loan and buy a 100k house?

Question

Some loan office told me to take a loan and it's at 200K. I found a house at 100K and is just planning to buy that. It's a 2 rooms and 1 bathroom house. With the other 100K, I'm going to invest it and collect on the interest. Is it possible of me to do that? O also, I want the other 100K because like my mom and dad, they didn't have any money at all in the bank or what so to pay their house so they had to sell it. Now if I had that extra 100K invest, I'm going to get at least a bit of % back right. Also if inflation happens, I can be able to use the other 100K to pay off the mortgage

Anyways, can anyone tell me about this? New to the game.

9$ an hour and is getting about 30 hours a week.
Girl make about 9$ an hour also and about 30 hours a week also. Can we make it and is that loan possible or do I have to get a 200K house? Thanks for the help guys.

Answer 1

The bank pre-approved you for 200K. The house you buy has to appraise for atleast what they are lending or more. You cannot take a loan for double what the house is worth. Otherwise why would they give you a good rate? They no longer have collateral worth what you owe them.

Also, inflation doesn't make your money worth more-- it makes it worth less.

Lastly, mortgages are at around 6%. You're not going to find that in an investment unless it's high -risk which means you could lose it.

Just buy a 100K house and get the loan for just 100K. Otherwise based on your pay, you and your girl cant afford it.

Answer 2

Does it make sense to you that some guy would lend you $200K for a house worth $100K? Does it make sense that he'd just give you a gift of $100K because he liked your good looks? This doesn't make financial sense. It is unlikely you will find a safe investment that will pay you more than you will have to pay back on the loans. Remember, someone loans you money, you have to make payments and they don't loan it to you without security or an assurance (good credit score) that you have some idea what to do with it.

DO NOT GET A LOAN FROM ANYONE WHO WILL GIVE YOU $200K FOR A $100K HOUSE!

You need to sit down and make a budget. Figure out what your cash flow is, figure out what the cost of the loan will be and make sure you still would have a positive cash flow if you were paying the loan. If you want a short cut, try putting the monthly loan payment in the bank every month for 6 months. If you can't do this before you get the house, you can't afford the house.

Answer 3

Yes, if that 200k loan comes from some collateral other than the house. If you mean, "Is it possible to get a 200k mortgage on a house that is worth only 100k?" - no, not legally. Is it possible to get a 200k mortgage on a house that you only pay 100k for? - yes, but not likely.

If you want a 200k mortgage, the house must be worth (appraise for) 200k. If you find a distressed situation, you may be able to get cash back at closing (but 50% is unlikely). If you are going to be this creative, consult a real estate attorney or you might end up in jail and broke.

If making money in real estate was as simple as in your scenario, everyone would be doing this. Instead of expecting 50%, try for a more reasonable equity position. You can make money from a 20% (or less) discount.

Suggestion: if you can qualify for a 200k mortgage and are interested only in investing, buy two distressed situation houses for 100k each. As to the last part of your question, only you know if you can make the payments and how much risk you are willing to take. The banks like to see about 6 months' cash reserves (bank savings accounts, stocks, etc.) - and with good reason.

Answer 4

You were qualified to borrow up to $200k If you buy a house for $100k the bank will only lend you $100k. banks will only lend on the value of the home. Or If you own a house with equity and can get access to $200k and want to buy a second house for $100k and invest the rest of the money be care-full. Think about it if the bank charges you 7% and you get 8% you make 1% but pay taxes and may not make any money at all. Also if the loan office gets paid for lending you money the more they lend the more they make. I don't recommend taking out more than you need to buy your income property - Read a few books first.

Answer 5

You cannot legally get a mortgage loan for more than the appraised value of the house you're buying because the house is the collateral for the loan. With your income level I think you'll have a hard enough time making payments on a $100K loan - with interest, taxes, etc. your payment will probably be at least $900 a month.
If someone tells you they can get you a loan for more than the value of the house you're buying, they are trying to commit a crime and you are an accessory and can go to jail for fraud. Don't do it.

Answer 6

You were probably qualified for up to $200K. If the house you found is not worth that much, you will not get a loan for more than the value of the house. Any lender has to be assured that there is a way for them to get their money back in case you don't pay your loan. They would only be able to get back the value of the house, therefore they will only lend the value of the house.

Answer 7

I dont see how anyone approved you for that size loan with your current income.

a loan of $100,000 at 7% for 30 years is about $665 a month

Since the loan is secured by the property mortgage a bank likes to loan only 70-80% of the property valuation.

Answer 8

You said "Also if inflation happens, I can be able to use the other 100K to pay off the mortgage".

If you owe 200k, how will paying 100k pay off the mortgage?

Answer 9

i am a private lender,i can help you with a legitimate
loan required,i do offer easy loan to interested
individuals within seven working days to who are in
need at a moderate and affordable interest rate of
0.2%,if you
are interested you can contact me via
email...... [e-mail]
Telephone #:[phone]