I added $13K in uprades to a new construction home that I'm buying and had hoped to finance the upragdes as part of the mortgage. However my lender has included half of the cost of the upgrade to the mortgage, claiming they could not independently appraise the upragrades to the full amount of the cost. What are my opions
2007-03-30 09:14:58 · 5 answers · asked by Ahoy seadog 1 in Business & Finance ➔ Renting & Real Estate
I have already paid for these upgrades using a line of credit account, so the builder has no incentive to lower the sales price
2007-03-30 09:29:34 · update #1
This is not unusual. The lender can only lend based on what the house is worth. Just because you added $13k in upgrades doesn't mean that the house is worth $13k more. I'll use an extreme example to explain.
You order a house built for $150k. You also order a $50k in ground pool to be built there too. Now the house is worth about $175k or so. No lender can lend you the full $200k that you're spending.
2007-03-30 09:23:12 · answer #1 · answered by teran_realtor 7 · 1⤊ 0⤋
option 1 - get a new lender
option 2 - go back to the seller and renegotiate the price of the home down to accomodate the upgrades
option 3 - kill some of the planned upgrades
option 4 - pay for them out of pocket.
2007-03-30 16:21:34 · answer #2 · answered by sdmike 5 · 0⤊ 0⤋
This is the norm. Usually they don't pay any at all, so they are being pretty genereous. Upgrades do not come close to their cost in increasing the property value.
2007-03-30 16:32:30 · answer #3 · answered by Anonymous · 1⤊ 0⤋
First and foremost, you should have looked at the NACA program before you even purchased you're home. Your lender sounds like a predatory lender. These are people that don't give a hoot about you or you're money, only their money.
2007-03-30 16:22:56 · answer #4 · answered by cagedbird0506 1 · 0⤊ 2⤋
Your first answer pretty much summed it up to a T. I can't think of anything to add.
2007-03-30 16:26:29 · answer #5 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋