If you don’t borrow full amount approved for FHA loan can you borrow extra for repairs?

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We have been pre-approved for an FHA loan. We are looking to buy a HUD home for way less than what our maximum loan amount is for. Are we able to borrow the lesser amount and add on more to the mortgage loan for repairs that need to be done to the home?

Thanks in advance for your answers!

My husband and I have a credit score of 650 with nothing bad on our credit report except that we both dont have much credit and have signficant school loans which combined are about $ 100,000. Together our income is around $ 85k a year and we are both in our early to middle twenties. We are renting right now but are looking to buy a housein the near future and I’m wondering if someone could give me a rough estimate on the maximum mortgage loan they think we will qualify for. We have do not have a downpayment except maybe a few thousand please let me know thanks!

  1. Reply
    Scott J
    April 29, 2011 at 9:08 pm

    FHA loans are very strict..especially now. Typically are not intended for fixer upper types of properties. Once you buy the home, you have options such as an equity line of credit. BUT, if house needs hugs repairs right up front you are swimming upstream going FHA. Check your own bank, there are programs out there to rehab properties…good luck.

  2. Reply
    Lisa L
    April 29, 2011 at 10:01 pm

    FHA has a 203K loan that is a rehabilitation loan. Some HUD repo’s come with the option to borrow the money to do the repairs. Find a Loan Officer in your area who knows & understands FHA loans.

  3. Reply
    the kid
    April 29, 2011 at 10:46 pm

    You will not be able to borrow more than the value of the home, for sure.

  4. Reply
    sarina stych
    April 29, 2011 at 11:16 pm

    I had a very similar problem recently. save time & click on the third and eighth links over at http://www.loansguide.tk

  5. Reply
    Jay S
    April 29, 2011 at 11:53 pm

    It depends on the monthly payments for your student loans.
    I looked at 300K as a purchase price with 3% down(FHA requirement) and included taxes($ 200 per month) and insurance($ 100 per month) and mortgage insurance at $ 121.25 per month plus principle and interest($ 1,723.67 per month) on a 30 year fixed loan without the student loan payments and you debt to income ratio is 30.28% which is well under guidelines.

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