What is the correct terminology in real estate when you buy a house and want to add home DEVELOPMENT

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Have always been ready on time, on our next house and we had to make our mortgage costs to renovate, what is the correct terminology for this part. How do we deal with the fact that the demand for payment. Is this still possible.

3 Comments
  1. Reply
    Barbara R
    May 4, 2011 at 1:30 am

    It’s very possible. It’s a construction loan, actually. You submit plans for the improvement, the bank or mortgage company submits those plans to an appraiser and the appraiser returns with a figure equal to the loan amount that would be required. That’s so the bank will know it’s a good investment,,,or not. When the improvements are done, you re-submit your request and at that time, with a new appraisal done, it becomes a fixed mortgage. Your bank can tell you more, but most of the time, the construction loan is interest-only until the project is done. Ask your bank. Good Luck.

  2. Reply
    eGuy
    May 4, 2011 at 2:23 am

    fixer upper

  3. Reply
    Matt J
    May 4, 2011 at 3:00 am

    A rehab

    You can get rehab loans that lend off the future appraised value.

    See diversifiedlender.com for more info on this.

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