The cost of a fixer in the monthly payments are received?

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If we have a house beat-up really cheap, a fixer-upper, which may be included in cost of fixing a mortgage approved before we vote for $ 150,000, but we found a house that is only $ 50,000, but missing major kitchen appliances including refrigerator and stove, you do not have washer / dryer and even toilet / shower, they could have significant needs for a home, be included in the Mortgage bought? What about costs for an addition to the home page? or minor corrections such as floors or things cosmetic? We do not save much money, but there are so many cheap HUD / REO properties available, which cost us less than what we pay rent. Most of them are in pretty bad condition, generally stripped by previous owners, with all the holes we überall.Können $ 150,000, which we have already approved and the house and fix and pay the monthly mortgage ? Or they just want to give you the loan for the exact purchase price of the apartment and nothing else? Thank you, Mr. Fix It, and if the house is worth much more than going is that the bank is interested in the amount of money that is the former owner of the HUD / REO property was left, then a lender would be willing to give at least what the house is actually worth? Say the house is sold by the bank for $ 50,000, but it is actually worth $ 80,000, a lender would allow us to take a mortgage $ 80,000 to $ 30,000, use it to repair?

  1. Reply
    Mr. Fix-It
    April 30, 2011 at 1:00 am

    It really depends on what the bank feels the value of the home is when you purchase it…Even though you are pre-approved for $ 150K–the bank will not loan you more then the house is worth as that would simply be poor business..You have two options—Borrow the money for improvements elsewhere and hope it adds enough value where you can get some wiggle room with a equity line to pay off the higher interest secondary loan,,,Or take out a Construction Loan to get the project done then roll it over to a conventional mortgage…Unless you have a background in Construction–these deals can be very risky—-we don’t know how much the repairs will be—or how much it will improve the value of the property…The bank may simply refuse to loan anything if they feel the property needs so much work they are at risk. For the most part–properties like these are best left for people with cash -to complete the work-then obtain a conventional mortgagee.

  2. Reply
    April 30, 2011 at 1:33 am

    There are loans such as the FHA 203K loan and HomePath® Renovation Mortgage Financing. You should speak with your lender who will be able to advise you more accurately just make sure they are experienced with these types of loans and are able to answer any questions you may have.

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