Can I fix the cost of the house on my mortgage?

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We strive to make an offer on a house planning 100 years old. But it takes a lot of repair work … Plaster, wiring, etc. How do I take credit for it? If I do it with the mortgage, or should be a separate loan?
hallo.i `m @ uni Freshman Austin (TX) and my question is, how do I willing to buy the house and car? tnx

home loan center

Downey to as loans.

11 Comments
  1. Reply
    lepr0kan
    January 21, 2011 at 8:45 pm

    You can only get a loan for the purchase price. After the closing if the house appraised for a significant amount more than the purchase price than you can take out an equity line for part of the difference. But, you will not be able to borrow more than what the house is currently worth. It’s a tricky situation but hopefully you can get a great deal on the property and be able to get an equity line for repairs.

  2. Reply
    MJ_F
    January 21, 2011 at 9:02 pm

    there are rennovation loans out there but it might make more sense to do an equity line that you can draw on only when you need to pay the contractors, etc. it depends on how much cash you have to put down, etc. Get a good mortgage person and they’ll work it out with you.

  3. Reply
    redwine
    January 21, 2011 at 9:29 pm

    You can include the amount of repairs in your mortgage. It just depends how much you initially planned on borrowing. i.e. if purchase price is 200k, and you were going to get a mortgage for 150k, and you had 10k in repairs, just borrow 160k, its still 20% down and avoids pmi. If you get into having to pay PMI, then I think a home equity line for the repairs make more sense. You can still deduct the interest and avoid PMI. tba

  4. Reply
    robert w
    January 21, 2011 at 9:56 pm

    smarter choice is get ur home loan, only.
    as for renovation do it cash only even if it means budgets and second jobs or sweat equity.

  5. Reply
    Mortgage Man
    January 21, 2011 at 10:23 pm

    Talk to a local broker who still has access to banks doing FHA 203k loans. This loan is specifically for people looking to make immedate improvements to a home. It works almost as a contsruction loan as you’ll get draws of a set amount of money as work is completed on the property. Make sure you’re dealing with a reputable broker though. These loans are hard to explain and get done if they don’t know what they’re doing!

  6. Reply
    mortgage_info_4u
    January 21, 2011 at 10:29 pm

    With out a job you will have to have some money down and good credit. Let me know if you want more info.

  7. Reply
    svikm
    January 21, 2011 at 11:29 pm

    You need enough cash for 10-20% down, pay check stabs for the last 2-3 month and, preferably, at least 2 years of stable employment

  8. Reply
    STEVEN F
    January 21, 2011 at 11:53 pm

    Income and Assets:
    Pay statements for the last 2 – 3 months.
    W-2s for the last 2 year.
    2 – 3 months of statements for checking savings and investment accounts.

    Debts:
    Recent statements from all credit accounts are useful.
    Your credit report will be reviewed by the lender.

  9. Reply
    TheTruthAbout
    January 22, 2011 at 12:38 am

    Used in Downey Savings Shut Down by FDIC article

  10. Reply
    offplanpropertyexchange2007
    January 22, 2011 at 12:44 am

    This image could not be better for our news story: Natural mortgage rate reduction helps real estate.

  11. Reply
    TheTruthAbout
    January 22, 2011 at 12:49 am

    Photo used in Home Equity Loan and HELOC Rates article

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