When buying a home under market value, can you finace for more then what the cost of the house is? Basically for any upgrades and to pay off any other debts.
2007-08-02 10:52:42 · 9 answers · asked by Nathan S 1 in Business & Finance ➔ Renting & Real Estate
In general, no. Lenders typically have a policy that they will loan the lower of either the purchase price or the appraised value. However, if you keep the loan for one year, it is possible to refinance based on a new appraisal.
2007-08-02 11:00:51 · answer #1 · answered by rlloydevans 4 · 1⤊ 0⤋
Usually not, even if the house needs work. Ourchase money mortgages are almost always fro the purchase price and closing costs, minus the deposit.
If you do get a second loan, you'll get one mortgage for the purchase and a loan for the repairs/renovations. The line of credit is a trype of mortgage, but instead of getting the money up front, it is given to you in installments as your contractor makes the repairs.
If the home is drastically worth more than the sales price, then you might be able to pay off other debts. That is uncommon, however.
2007-08-02 12:55:47 · answer #2 · answered by mcmufin 6 · 1⤊ 0⤋
You can get a loan on a home based on what your bank feels the assessed value of it is, not necessarily what you paid for it. If you can buy it for less than that, you can use the balance as you see fit.
You are paying interest daily on the entire amount however, for up to 30 years, so be careful with how much money you want to take out of it. The ownership of your home is at risk. It's generally sound advice to keep your debts to a minimum.
2007-08-02 11:03:42 · answer #3 · answered by righteousjohnson 7 · 0⤊ 0⤋
First detect a good realtor and ask him/her to discover foreclosure or economic corporation repos in the section you have an activity in. Lien sales do no longer usually finally end up in you possessing the homestead, plus for many you will possibly desire to attend a minimum of three years till now you are able to lay declare to the homestead and then reckoning on the state you're in you may might desire to have one hundred% vested activity in that components something much less and a decide is incredibly no longer rapid obtainable over the deed or evict the tenants. In my adventure sheriff sales might desire to internet you a house, yet whilst the interior maximum loan giver (economic corporation or agency that gave very own loan) is modern-day on the usually used public sale they're going to pump up the bid till they the two get the quantity they choose for for the homestead/components or get the valuables. As for different strategies - seem for properties that have been on the marketplace for a whilst. human beings grow to be desperate after a whilst and could be extra keen to artwork with you on the value or different issues (paying final costs, homestead guarantee, and so on.) wish this helps.
2016-10-09 02:11:39 · answer #4 · answered by ? 4 · 0⤊ 0⤋
generally, no
the one exception, maybe, is if you buy it with the idea of immediately remodeling ... then you may be able to get a construction loan instead of a regular mortgage.
the tricky bit is that the bank will require you to put your down payment in first and then will fund the remaining purchase amount. BUT the part for the remodeling will only be paid to the contractor and then only after the usual inspections and releases of liens.
other debts? NO WAY!!
2007-08-02 11:00:52 · answer #5 · answered by Spock (rhp) 7 · 0⤊ 0⤋
It is possible, but be careful: you, the seller, the Realtor and the Lender are treading on thin ice when you do it. I don't know exactly how it's done, but I know it has something to do with rewriting the contract (to the higher appraised value) after the appraisal is complete. It might be legal, but I can't help but think it's somehow shady. Ask your lender.
2007-08-05 18:03:14 · answer #6 · answered by Appraiser Guy 2 · 1⤊ 0⤋
I don't think so. Nice try.
Keep the house for a few years, then you can refinance and do some improvements with the equity it has built in the three years.
2007-08-02 10:57:36 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Yes, you can. We just did this six months ago. If your banker agrees, you may be able to get money for necessary repairs, etc. We got an extra $10,000 for furniture, appliances, repairs, etc. Talk with your banker...only he can tell you if you qualify.
2007-08-02 11:01:12 · answer #8 · answered by Anonymous · 1⤊ 0⤋
the answer is NO- its called TRUTH IN LENDING
2007-08-02 11:05:55 · answer #9 · answered by Anonymous · 0⤊ 1⤋