| Author |
Message |
|
|
 zehneramanda
Joined: 05 Nov 2009
Posts: 3
1.65 Dollars($)
|
 Posted: Thu Nov 05, 2009 2:47 pm Post subject: 2 loans? |
|
|
| We currently have a mortgage on first home that we purchased over 10 years ago. We owe roughly $20,000 and the assessed value on our home is 61,000. We would like to build in the spring. What would be the best type of loan to pursue? We are not sure if our home will be sold by then. |
|
|
jveenstra
Community Experts
Joined: 10 Nov 2008
Posts: 340
Location: River Edge, New Jersey
85.80 Dollars($)
|
| Posted: Thu Nov 05, 2009 2:59 pm Post subject: Build |
|
|
It sounds like your current home is listed for sale? If it is, you can not do a mortgage on that property to take cash out to build. No idea the amount of the building costs you are talking about.
That leaves a construction loan. They exist in two ways:
1. A construction loan that converts to the end loan when construction is complete
2. A construction loan from one lender and an end loan from another lender.
You may get better answers if you note what the total construction costs are intended to be and in what state the consturction will take place.
_________________
John Veenstra
Senior Mortgage Consultant
Approved Funding Corp
41 Grand Avenue
River Edge, NJ 07661
800-475-0123 Ext 278
|
|
|
Amanda
Guest
|
| Posted: Fri Nov 06, 2009 8:04 am Post subject: 2 loans? |
|
|
Well, the house is not technically for sale. We have a sign in the front yard that says 'For Sale' but that is as far as it goes.
We are located in WI and belive our costs will be around $150,000. I did fail to mention that we do have a HELOC loan with about $20,000 also. |
|
|
Amanda
Guest
|
| Posted: Fri Nov 06, 2009 8:04 am Post subject: 2 loans? |
|
|
Well, the house is not technically for sale. We have a sign in the front yard that says 'For Sale' but that is as far as it goes.
We are located in WI and belive our costs will be around $150,000. I did fail to mention that we do have a HELOC loan with about $20,000 also. |
|
|
jveenstra
Community Experts
Joined: 10 Nov 2008
Posts: 340
Location: River Edge, New Jersey
85.80 Dollars($)
|
| Posted: Fri Nov 06, 2009 8:26 am Post subject: Build |
|
|
The equity in the present home is not officially listed, so, if you need money from it to help start building you could probably refinance and get about $25,000 cash out to put towards construction--but, take the for sale sign down before you apply for the mortgage.
There is no reason to refinance and take cash out from the present home. You need a construction loan, either the one closing or the two closing kind, what ever is available in Wisconsin.
You need to qualify for the construction loans just as you would for a regular loan.
You need to contact local banks and mortgage lenders to determine what is available to you in Wisconsin.
_________________
John Veenstra
Senior Mortgage Consultant
Approved Funding Corp
41 Grand Avenue
River Edge, NJ 07661
800-475-0123 Ext 278
|
|
|
