Can you get a mortgage for more than your home is worth?

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We are first time home buyers. We want a house for 90K, 30K, but we want to repair. Is it possible to get almost the entire mortgage for 120K?

2 Comments
  1. Reply
    col. Kurtz
    March 4, 2013 at 2:44 am

    YES… the FHA 203k loan rolls the cost of repairs and purchase money into one loan!!
    The catch: you must be purchasing the property for UNDER the market value. The FHA appraiser will inform the Lender what the “As Is” value of the property is, your purchase price [$ 90k], and the “after repaired” value of the dwelling will be [$ 30 + 90k= >$ 120k] The numbers must make sense!

    So make sure you have a sharp Realtor who can find you a “diamond in the rough” for under market value due to the condition of the dwelling; and you can put up with the repairs in progress after the close of escrow.

    Smart way to acquire property!!! Most people are too LAZY to take advantage of this terriffic loan; Good on you!!

  2. Reply
    Gaytheist Buddha
    March 4, 2013 at 3:03 am

    Maybe. The current refi programs MIGHT allow you to borrow up to 105% of your property value. But only for people in trouble.

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