If i buy a house for 100,000 and my loan is for 125,000 can i use the remaining 25,000 for personal use?
2007-08-19 10:33:54 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
There are a few loans that will give you more than the appraised value of a house. They are called 125%, 107% and 103%.
You may use the money for what ever purpose you desire unless it is marked for debt consolidation( You have to produce the debts to be paid off, most will be paid through escrow by issuing a check to the company being paid, they will give you the check) or home improvement and the improvement will be inspected after a certain time.
Check with your mortgage broker about these loans, because they are available, some mortgage brokers or loan officers may not be aware of them.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-08-19 10:49:19 · answer #1 · answered by loanmasterone 7 · 1⤊ 1⤋
You may be approved for $125,000 but if you only spend $100,000 on a house they are not going to loan you $125,000. Depending on what type of loan you are getting. Most lenders want 20% down and that comes out of your pocket. So if you spend $100K they are only going to finance $80K. There is 100% financing but you are still only going to a loan for the sales price of the home if the appraised value is $100K. Loans with less than 20% down you will have to have PMI and that can run between $100-$300.
2007-08-19 18:03:25 · answer #2 · answered by Leo F 4 · 0⤊ 1⤋
you cannot do that its called mortgage fraud
Its a no no and the courts are full of people pulling this scam buy this house it will appraise to 125 and we'll sell it to you for 100,000 NOT ALLOWED and most of the time the appraiser is in on it. DO not do this the max you could walk away with is 1% of $100000.00
the only loans i know of that will finance that much and give you extra money on a pruchace are rehab loans and they will want documentation on what the house needs and will only give you money to pay subcontractors and will check to see if the work is done before they cut a final check for each thing to be done.
if they are financing at 125k they are financing at the value of the home completed with upgrades you propose.
It is against the law to finance more than the appraised value of a property other than the above exception. and a few others but if someone is telling you buy this home finance with this person here and we have our own apprisers get out of the deal this is against the law.
2007-08-19 17:58:05 · answer #3 · answered by beachlover 2 · 0⤊ 1⤋
If you asked your bank how much you could borrow for a house thay may have worked out the maximum loan based on your income and debts.
When you actually apply for a home loan they will generally loan you up to maybe 90% of its assessed value. The market value you pay for the house may be higher or lower than its assessed value.
In short they probably wont loan you more than the houses value, unless its assessed a higher value than you paid for it .
2007-08-19 17:49:31 · answer #4 · answered by mark 6 · 0⤊ 1⤋
You want to pay on that debt for 30 years?!?!?!?!!?
It is very very unlikely that a bank will loan you $25K over the value of the home.
You can certainly get a "jumbo" loan where you get extra. People do this to buy a house and make repairs, or to buy a house, then install a pool.
I just can't imagine rolling that ipod you bought last year, or that dinner and movie from last month, into a 30-year note. That's crazy!
Doing this would explain your screen name. DITZY!!!!
2007-08-19 17:41:53 · answer #5 · answered by Anonymous · 1⤊ 1⤋
Good Question. You may want to pay off some little bills but if I were you I would set the rest aside and pay your first few loan payments and keep adding to this by putting what your loan payment is in with this. You would be surprise at how fast your home could be paide off.
2007-08-19 17:42:44 · answer #6 · answered by caldrich36 2 · 0⤊ 2⤋
No.
That is called mortgage fraud and no legitamite lender would give you a 125,000 dollar loan to buy a 100,000 dollar house.
2007-08-19 17:43:37 · answer #7 · answered by dereklf70 2 · 1⤊ 1⤋
You will not be able to get cash back on a purchase. The loan will be based on the lower of the two; appraised value or purchase price.
2007-08-19 17:44:03 · answer #8 · answered by ? 4 · 0⤊ 2⤋
u wont get a loan for $125,000 on a house sold for $100.000
2007-08-19 17:39:52 · answer #9 · answered by Bill P 5 · 0⤊ 1⤋
Nope. You cannot get cash back on a purchase. Period.
2007-08-19 19:30:04 · answer #10 · answered by Expert8675309 7 · 0⤊ 0⤋