Im looking to purchase a new home if i find a house selling for 80,000 but worth 100,000 can i get the loan for what the house is worth so i can have extra money to take care of other things???does this work???
2007-08-06 15:40:19 · 11 answers · asked by kcir926 2 in Business & Finance ➔ Renting & Real Estate
There are a few mortgage products like that allow you to get cash above asking price to use for repairs/renovations, but they are very difficult to qualify for and most lenders won't even offer them. Ask around for an FHA 203K loan.
Purchase loans with cash back for other things, no. Your best bet would be to buy the house now for $80k and refinance in one year for $100k (unless you're in Texas).
Good luck!
Edit: Loose Change is 100% wrong.
2007-08-06 15:45:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
In a purchase transaction, the lender will only lend up to the purchase price of 80,000 not the appraised value. After you close on the 1st mortgage and it is in your name you could then apply for a home equity line or home equity loan which would be based on the appraised value. There will be questions from underwriting as to why the home was sold 20,000 less than the appraised value. Many loan programs want a list of improvements that have been completed since the purchase. So you may need to wait a while after obtaining the 1st mtg.
2007-08-06 16:13:30 · answer #2 · answered by yourmtgbanker 5 · 0⤊ 0⤋
go see a local loan officer - it's FREE - to tell you how you could finance to see what works best for you - also make sure you get a Realtor - or someone who sells mobiles - you will want to make sure you own the land - since it's in a community - are there any rules for that association/community that you can't live with? What are the rules if you want to move the mobile somewhere else later? Also, mobile financing is VERY different than regular financing - higher interest rates & more $ down - unless you get a lender that specializes in modular or mobile home sales and look for an affidavidt of affixation - makes the home worth more if it's wheels are removed and it's permanently on the ground/land. Keep in mind also, that a mobile has less resale value later (I wouldn't buy a mobile) I'd buy a regular stick built home - better rates and loan options.
2016-04-01 02:46:32 · answer #3 · answered by Anonymous · 0⤊ 0⤋
of course. Jump on it sounds like a great deal. If you think there will be lots of people trying to buy that particular property you want to offer a higher price, because of couse the seller is going to go with the best offer. If you can find a real estate agent or an appraisor they could probably help you figure out how much the property is worth then go from there if you're not sure where that estimate came from.
First you need to get prequalified (this is where they check your cretid score based on your credit history and such)though, so shop around for lenders see who has the lowest interest and with the number of forclosures there are these days I would suggest trying to go for a fixed interest. When you find the bank, get pre approved which is the bank giving you an "ok" we will loan you the money. Then submit your offer to the seller of the property.
good luck hope it helps, if you have any other questions feel free to shoot me an e-mail.
2007-08-06 15:48:11 · answer #4 · answered by G-gnomegrl 3 · 0⤊ 1⤋
the bank will usually only lend on the lesser of the purchase price or the appraisal. so if the appraisal says $100k but the price is $80k, they will probably base your loan amount on the $80k. there are a lot of programs that lend you 125% of the purchase price and all that stuff.
the best thing to do is to get a loan at 80% of the price and then get a second loan for as much as you can. that way you should have to pay mortgage insurance.
the second loan will have a higher rate though. shop around
2007-08-06 15:44:10 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Well by any other name, it is termed a Home Equity Loan. This is a loan above and beyond the value of your home that you use in order to upgrade and fix up your property. That is, if you can manage to find one off the bat (80K purchase worth 100K). People usually own their homes for a couple of years before qualifying for one since the price they buy it for doesn't appreciate that fast. But if you find one, more power to you.
2007-08-06 15:43:48 · answer #6 · answered by Go Kings Go! 1 · 0⤊ 0⤋
Yes, it is very common to roll over, say, credit card debt into a home loan, or get a loan for over the home price for home improvement, or whatever you want. As long as you qualify for the $100,000 loan, the bank doesn't care what you do with it. They just care about how much interest they can make on the $100,000 and your ability to repay the loan. Since you will be making a downpayment (maybe 20%) the collateral of your home will more than cover the risk for the bank if you default.
2007-08-06 15:44:38 · answer #7 · answered by Anonymous · 0⤊ 2⤋
No, it does not work. In this mortgage climate you will not find a lender who will write a mortgage for more than the purchase price of the house, plus perhaps a few additional percent to cover closing costs.
Of course, you can apply for a HELOC after you purchase the property.
2007-08-06 16:49:25 · answer #8 · answered by acermill 7 · 0⤊ 0⤋
No. You can ge a loan for the LESSER of the sale amount or the appraisal amount.
How do you know the property is worth $100K? Always....consider the source from which it came.
2007-08-06 15:56:28 · answer #9 · answered by Expert8675309 7 · 0⤊ 0⤋
You can take out a home equity loan if your mortage is less than the fair market value of the house. I am not sure of you can do this when you first buy the house.
2007-08-06 15:43:57 · answer #10 · answered by Anonymous · 0⤊ 0⤋