Posted on: 08th Jun, 2009 03:57 pm
Hello, I am looking into a house right now that is listed for 69,000. I probably would pay up to 60,000 for it with an FHA loan and then use a 203k rehab loan. I have been told that I can only take up to as much as I pay for the house (60,000) for rehab. However, it will cost probably between 100,000-140,000 to fix it all up. Are there any other options to get extra money for rehab?
Hi Guest,
It does not look like you will get another rehab loan, apart from the 203k loan, to fix the home. The reason I say this is, the listed price of the home is $69,000 and its appraised value will be somewhere around that figure. Now, if you have an FHA loan to make the purchase of the home, a 203k loan to do the rehabilitation work, you will hardly get another loan against your home.
You can arrange the extra money from your savings. You can use your 401k as well. But withdrawing money from it will result in a penalty and taxes. The other way to get the extra money would be through a personal loan. But you need to have a very good credit score and payment history in order to qualify for a personal loan. The interest rates on this type of loans are generally higher than normal.
Thanks,
Jerry
It does not look like you will get another rehab loan, apart from the 203k loan, to fix the home. The reason I say this is, the listed price of the home is $69,000 and its appraised value will be somewhere around that figure. Now, if you have an FHA loan to make the purchase of the home, a 203k loan to do the rehabilitation work, you will hardly get another loan against your home.
You can arrange the extra money from your savings. You can use your 401k as well. But withdrawing money from it will result in a penalty and taxes. The other way to get the extra money would be through a personal loan. But you need to have a very good credit score and payment history in order to qualify for a personal loan. The interest rates on this type of loans are generally higher than normal.
Thanks,
Jerry
if possible, you ask current owner for modification. then apply for FHA loan.