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Guest

We are thinking of making improvements on our home and for that we need around $20,000. But my home equity is around $14000. Also, the $20,000 is just an estimate provided by the builder. It may exceed the figure. So, is there a mortgage company which can lend more than the appraised value since when the improvements are made, the home value would increase.

Guest

With the current mortgage crisis, lenders are lending maximum up to 100% of the home value. Even that is difficult to get.

ckalvesmaki · Posted: Sat Feb 02, 2008 8:07 am Post subject:

Mac_7

That information isn't entirely correct.......

To the OP.....There are rehab loans available....FHA has an option as an example and it sounds like you may fit into that.....They will use the completed value vs the current value to determine how much they will lend.

Posted: Sat Feb 02, 2008 12:54 pm Post subject:

As already indicated, there are rehab programs available to both investors and home owners that will lend based upon the ARV (after repair value)/FMV (future market value).

In the case of FHA, you can borrow up to 97% of the FMV, receive up to 50% of the cost of repairs at closing, defer mortgage payments up to 6 months (if you aren't occupying the property during repairs), etc., with one rate fixed for 30 years without your credit scores being a deciding factor.

Regards,

Scott Miller

ezmortgageloanz · Posted: Sat Feb 02, 2008 12:55 pm Post subject:

Sorry, that was my post above.

Regards,

Scott Miller

Guest

We have one of those ARM's and live in Las Vegas where values have dropped so we're upside down on our house. We have been told that FHA will loan 117% of value but you have to have good credit history and no late payments on your existing mortgage. If you have a home equity loan they have to agree refinance.

adonis · Posted: Fri Feb 08, 2008 2:50 am Post subject:

As much as i've head is FHA apporved lenders offer maximum 97% financing. how come it's 117% of the value?

jbarto65 · Joined: 04 Nov 2007 Posts: 622 -0.15 Dollars($)

I have never heard of anyone lending more than the value, but I could be wrong, most will only lend like 80% of property value.

ckalvesmaki · Posted: Fri Feb 08, 2008 5:48 am Post subject:

Let me clarify.....When you are looking at a home renovation loan......like a FHA 203k....as an example.......the value is based on the completed value of the home.....ie if you spend 20k in renovations on a home that is currently worth 100k....and those renovations make the house worth 160k....then the value is 160k......

jbarto65 · Joined: 04 Nov 2007 Posts: 622 -0.15 Dollars($)

Ok, so you are making the loan for rennovation or remodeling of the home to make it worth more then it would make sense that they would lend it to you then.

freds11 · Joined: 17 Mar 2008 Posts: 17 4.91 Dollars($)

I think it depends on the potential of the property.

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Does anyone lend more than the appraised value?