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Martha
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0.10 Dollars($)
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 Posted: Mon Mar 03, 2008 11:31 am Post subject: 203k alternative? |
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I found a house that I want to purchase in PA. It is a historic farmhouse built in 1800 and literally needs about 185k of work. There is asbestos, mold, structural issues and a ton of plaster, roofing, and utility issues. That said, it is owned by a bank due to foreclosure. They have owned it for 6 months and the price has dropped about 130k in the past year (the owner tried to sell for about 6 months).
The asking price is 370k but I know I can get the bank to release it for less, the question is how much less and then how do I rehab it on top of a mortgage loan? I cannot sell my current house until the rehab is done so funds are not available to do it that way. I had a brainstorm but do not want to move further into the process unless I can get some feedback first. I may be completely off mark with my idea but it is worth putting it out there to see if it is an option.
I want to finance the property through the bank that owns it for a total of 240k. However, I want 185k of that amount to be a home equity loan. A mortgage of 55k and home equity of 185k is only 65% LTV, the combined payments will be within my qualification and the owning bank still holds both loans for 240k. Can I do this? The bigger question is, do you think the bank will do it? |
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 Jeanette
Joined: 19 Oct 2007
Posts: 103
Location: 760 Lynhaven Parkway, suite 140 Virginia Beach, Virginia
32.42 Dollars($)
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| Posted: Mon Mar 03, 2008 4:55 pm Post subject: |
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Martha,
This is probably going to be a question for the bank because not all banks operate the same. Sounds like a big project and possible but contact several banks and see what they will be able to offer. Or find a loan officer who can be of help to you.
All the best with that project.
Jean
Loan Officer |
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willisaddo
Joined: 10 Oct 2006
Posts: 32
Location: Atlanta
17.53 Dollars($)
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| Posted: Mon Mar 03, 2008 8:18 pm Post subject: Renovation Lender |
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Hi Martha,
This doesn't sound like something a bank would do unless it's a renovation loan. My name is Will. I am a renovation specialist with Wells Fargo Home Mortgage. You can use our purchase and renovate program to achieve your objective.
[Promotional part deleted as per forum rules. Thanks.]
_________________
Will Addo
Wells Fargo Home Mortgage
678-473-6776-O
www.wfhm.com/wfhm/willis-addo Website
“Your credit score: Those three little numbers
can have a six-digit impact on your life.” |
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willisaddo
Joined: 10 Oct 2006
Posts: 32
Location: Atlanta
17.53 Dollars($)
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| Posted: Mon Mar 03, 2008 8:28 pm Post subject: FHA 203k |
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I neglected to mention that FHA 203k maximum renovation cost is 35K. They also will not allow structural renovations.
_________________
Will Addo
Wells Fargo Home Mortgage
678-473-6776-O
www.wfhm.com/wfhm/willis-addo Website
“Your credit score: Those three little numbers
can have a six-digit impact on your life.” |
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