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Say you want to buy a house, but needs repairs and don't have money for them......if you get the loan from your credit union will they only give you the loan for the amount of the home? I've seen those house flipping shows where the person buys a home and they fix it up, but do they get a loan to fix the home on top of the loan to buy the home?

2007-03-21 10:50:06 · 2 answers · asked by ((surimi)) 2 in Business & Finance Renting & Real Estate

2 answers

Some lenders will offer loans for more than 100% of the appraised value of the home, but your interest rate on that type of loan is likely to be higher than a more traditional loan. If you are solely interested in flipping the property, you could also look into an "interest only" loan. You don't get any closer to owning the house, you just pay interest, but this can be a way to keep your mortgage payments down while you upgrade the house and create new value in the house. I'd just caution you to know what repairs will really be necessary and have an idea of their costs. Good luck.

2007-03-21 11:00:23 · answer #1 · answered by finra 4 · 1 0

You should have the house appraised before the contract is ratified.

Yo submit a contract for some value, it could be the asking price or some value less that that. You should make the contract contingent of the house passing an appraised value of equal or more than your offer. You should also make the contract contingent on the house passing an inspection, by a professional inspector to identify that there are no major problems in the unit such as plumbing, leaks and so on. If the house doesn't pass inspection, or the appraisel you should make a counter offer of something less. The offer minus the cost of getting it fixed.

If you sign a buyer/broker agreement with your realtor they will help guide you through this process. Good Luck.

2007-03-21 10:57:44 · answer #2 · answered by ttpawpaw 7 · 0 0

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