We bought a large unfinished home. We basically ran out of money (after 6 years) to complete it. Would borrowing funds privately and compensating through the equity after-renos be a good way to go? We just want a complete home. Our credit is not the best. Is this risky and what disadvantages are to this? We have no equity.
2007-10-18 07:53:20 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
You will have to go to a private source as with no equity and poor credit you are not a lendable risk, certainly not in today's sub prime crisis. Sorry!!
2007-10-18 08:23:27 · answer #1 · answered by hazel a 3 · 0⤊ 0⤋
You are in the boat that is affecting a lot of Americans and putting a crimp in the economy. You bought way to much house because interest rate where low. With the average American's income actually in decline, home values plunging and little money down. You now owe something that you can't afford, and won't get near enough to pay off the debt if you sell.
I saw this sooo coming... even got in a huge arguement with my two best friends (both new home owners) over it... luckily they both went in with 20% down and home values in our area didn't go as nutz as on the coasts.
There's probably no easy solution either, your looking at having to take on second jobs just to make payments. But this is exactly why for years I've contended that Personal Finance should be on the agenda in High School (honestly has the two years of German or English Lit helped you, but I bet you wished now you knew a lot more about interest rate movements).
2007-10-18 18:47:16 · answer #2 · answered by tiescore 6 · 0⤊ 0⤋
fha has a no score requirement...and allows up to 95% loan to value...
other than that you will need to go to a private source or take out an unsecure loan
2007-10-18 16:06:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋