Posted on: 16th Jul, 2010 05:49 pm
my parents are willing to lend me money to purchase and repair/upgrade a home currently deemed unliveable however, they would like to be repaid within the next few years. a conventional loan is not currently an option due to the needed repairs and the fact that i am starting a new job. the house is priced below market and will easily appraise for more that the loan amount after the repairs/upgrades are completed. currently i have no debt, a fico score of 800, and enough money for a 20% down payment. can i refinance this loan to my parents with a conventional mortgage after the repairs/upgrades are completed and i have established sufficient job history?
Hi youcanbankonit,
You would be able to refinance the mortgage once you've sufficient equity in the property and when you've established sufficient job history. With an excellent credit score and no other debts, you won't face any issues in getting a mortgage.
Thanks
You would be able to refinance the mortgage once you've sufficient equity in the property and when you've established sufficient job history. With an excellent credit score and no other debts, you won't face any issues in getting a mortgage.
Thanks
You may also want to look into an FHA 203k rehab loan, or if you can find one then a conventional rehab loan (although those are rare). These would allow you to purchase the home as well as finance the cost of repairs as well (subject to the required down payment %).
Information on the FHA 203k loan:
http://www.hud.gov/offices/hsg/sfh/203k/203kmenu.cfm
Information on the FHA 203k loan:
http://www.hud.gov/offices/hsg/sfh/203k/203kmenu.cfm
I decided against a 203k since you have to pay MI even if you put 20% down. That gets very expensive and I would like to avoid those fees as long as I can refinance into a conventional loan soon. This property is in Texas and I am worried about the cash out laws in Texas.