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GTews
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0.10 Dollars($)
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 Posted: Fri Jul 07, 2006 10:36 am Post subject: mortgage loan on appraised value |
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Suppose the house that I bought for 50k was appraised for 100k. In that case will I be able to get a mortgage loan for the appraised value of the house i.e. 100k? I would like to use the remaining funds fro rehab and my personal business.
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redbeak
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0.10 Dollars($)
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| Posted: Fri Jul 07, 2006 10:42 am Post subject: |
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| I have doubts? Is that possible? If it was so then it would have helped me too. |
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 blue
Joined: 21 Oct 2005
Posts: 1138
Location: MARYLAND
137.64 Dollars($)
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| Posted: Fri Jul 07, 2006 10:44 am Post subject: |
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Hi,
I don't think any lender will lend you more than the purchase price in that case. Normally you find a loan granted to you on the appraised value of the property or the purchase price whichever is lower.
Blue
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1539
Location: MASSACHUSETTS
137.28 Dollars($)
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| Posted: Fri Jul 07, 2006 11:25 am Post subject: |
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Hi,
You will find most lenders not lending you more than the purchase price of the property. There are other ways if you want to borrow more than the purchase price. You can get hard money lenders giving you a "rehab" loan but they are going to charge you more for that. While you show the list of repairs you may have to show some more than what is actually done.
There are some other options which you may opt to get some extra money. Purchase the property and then you can do non-seasoned cash out refinance or a no closing cost HELOC for 80% to 100% of the value starting with your mortgage balance.
God bless you.
For MortgageFit,
Samantha
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kdrennen
Joined: 26 Jul 2006
Posts: 4
Location: Ny
2.05 Dollars($)
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| Posted: Wed Jul 26, 2006 1:11 pm Post subject: |
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Hi,
You should be able to borrow what the appraisal comes out at. It's called LTV....Loan To Value. It's not based on what you purchased the house for. |
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fame
Guest
0.10 Dollars($)
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| Posted: Wed Jul 26, 2006 1:33 pm Post subject: |
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| Quote: | | You should be able to borrow what the appraisal comes out at |
Do you mean to say that if the purchase price is 50k and the appraisal value is 100k, then I would get a loan on 100k?
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colin
Moderator
Joined: 30 Jun 2006
Posts: 602
Location: Waltham, Massachusetts
112.62 Dollars($)
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| Posted: Wed Jul 26, 2006 1:48 pm Post subject: |
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May be I can help here. LTV is the relationship between the mortgage loan amount and the real property value expressed as a percentage.
In case of purchase loans the property value is the appraised value or the purchase price, whichever is less. In case of refinance loans the value is the appraised value.
A 90% LTV means that a borrower can borrow up to 90% of the property value. The difference between the purchase price and the mortgage amount is the down payment made. |
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kdrennen
Joined: 26 Jul 2006
Posts: 4
Location: Ny
2.05 Dollars($)
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| Posted: Wed Jul 26, 2006 2:00 pm Post subject: |
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| This is what I am saying. If your house is "worth" 100k we can loan you 100k Its considered 100% financing. The problem with going to 100% is your a risk to the lender and the Rate is going to be higher. |
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fame
Guest
0.10 Dollars($)
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| Posted: Wed Jul 26, 2006 2:06 pm Post subject: |
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| ok, I understand it now, thx. |
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kdrennen
Joined: 26 Jul 2006
Posts: 4
Location: Ny
2.05 Dollars($)
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| Posted: Wed Jul 26, 2006 2:07 pm Post subject: |
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| No problem anytime. |
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