2007-06-04 14:56:45 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The loan amount should be less than the value of the house. In the olden days when I bought my house, banks required a 20% down payment. With the cost of houses these days, that percentage can be less.
I doubt any bank would give a loan for more than the value of the house. The house is their collateral, and if you default, that's the only value they can count on, so I'd bet that is the absolute maximum. For your benefit, it's better to have some equity yourself, so a 10% or 20% or more downpayment is better, if you can afford it.
2007-06-04 15:01:46 · answer #1 · answered by Karl the Webmaster 3 · 0⤊ 0⤋
The loan can be more if the appraisal is higher than the selling price. If the house needs a lot of work there are loans available to cover the cost of repairs in addition to the selling price. Check with a mortgage broker. Don't ask the people on here.
2007-06-04 22:02:39 · answer #2 · answered by mjorod 4 · 0⤊ 0⤋
Recently you could actually get loans for more but that is never a good idea. Sub prime lenders were recently issuing loans at 125%, but this is never a good thing and has somewhat attributed to the current condition of the housing market!
They were recently lending out at rates higher than the house was valued at!!!
2007-06-04 22:08:35 · answer #3 · answered by SA 4 · 0⤊ 0⤋
It all depends on the apprasial of the home not the asking or selling price. The apprasial is what the bank uses to base the loan amount on. No lender will loan more than the apprasied vaule of the home and depending on your credit score they may request you to pay a % down on the loan so they are only loaning 80-90% of the vaule.
2007-06-05 10:01:58 · answer #4 · answered by Rosie 4 · 0⤊ 0⤋
I don't know of any banks that will lend you more money than a home is worth. However, if there is work that needs to be done on a house to increase the value of it significantly, you may be able to find rehabilitation loans. It is a lot easier to get a loan for less than the value of a home, than for the whole value of a home (also known as 100% financing).
2007-06-04 22:31:58 · answer #5 · answered by Christopher B 6 · 0⤊ 1⤋
The bank will reqiure the loan to be in the amount of the selling price you can add sellers Concession to the contract or add an allowance for repairs like 10K for new kitchen in the contract or offer. be sure to ask your agent
2007-06-04 22:32:40 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It can certainly be less. It cannot be more than the house is worth.
2007-06-04 21:59:21 · answer #7 · answered by MOM KNOWS EVERYTHING 7 · 0⤊ 1⤋