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LulaBell
:)
Member since 1/06 3508 total posts
Name:
J
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Financing a home remodel
We are considering a large extension/remodel and I'm looking for insight about our financing options. We would need to finance a part of it (possibly 100k). We have refinanced once so I am not sure if that's an option. Can any btdt provide insight? TIA
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Posted 1/31/12 8:15 PM  |
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Prudential Douglas Elliman Real Estate
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LulaBell
:)
Member since 1/06 3508 total posts
Name:
J
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Re: Financing a home remodel
Bump -help pls!
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| Posted 2/1/12 3:42 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Financing a home remodel
For that amount the only way you will be able to do this is if you do either a home equity line of credit or another refinance with cash out.
How much equity do you have in you home? You are going to need a lot because most banks require you stay within 80% loan to value on a refinance. Some might allow 90% but that's pushing it.
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| Posted 2/1/12 3:57 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Financing a home remodel
Posted by ave1024
For that amount the only way you will be able to do this is if you do either a home equity line of credit or another refinance with cash out.
How much equity do you have in you home? You are going to need a lot because most banks require you stay within 80% loan to value on a refinance. Some might allow 90% but that's pushing it.
that's not true....you could do a FHA 203K
I can recommend a mortage professional for you to speak with
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| Posted 2/1/12 9:48 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Financing a home remodel
Posted by Beth
Posted by ave1024
For that amount the only way you will be able to do this is if you do either a home equity line of credit or another refinance with cash out.
How much equity do you have in you home? You are going to need a lot because most banks require you stay within 80% loan to value on a refinance. Some might allow 90% but that's pushing it.
that's not true....you could do a FHA 203K
I can recommend a mortage professional for you to speak with
Well yes it's a mortgage backed security. But are they going to give you this loan if you don't have sufficient equity in the house?
That is the point I was trying to make.
ETA: Looks like it will allow up to 115% equity. That's not bad. But if your house is only worth 330-340k and you owe $300k and want to borrow 100k that's not going to work.
You still need a lot of equity to borrow 100k. Hopefully the OP has it.
Guidelines
Message edited 2/2/2012 9:15:30 AM.
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| Posted 2/2/12 9:08 AM |
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LulaBell
:)
Member since 1/06 3508 total posts
Name:
J
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Re: Financing a home remodel
Thank you both for the info - yes I'd like the broker rec
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| Posted 2/2/12 5:55 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Financing a home remodel
and FHA 203K is based on what the house will be worth when the work is complete
so yes- she could get this type of loan- it's not commonly used for this- mainly b/c bankers don't like to do them b/c they are time consuming
I would continental home loans for an FHA 203K
I like Robert Morandi 631-627-6060
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| Posted 2/2/12 6:53 PM |
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angrybird
LIF Zygote
Member since 10/11 15 total posts
Name:
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Re: Financing a home remodel
Posted by ave1024
Posted by Beth
Posted by ave1024
For that amount the only way you will be able to do this is if you do either a home equity line of credit or another refinance with cash out.
How much equity do you have in you home? You are going to need a lot because most banks require you stay within 80% loan to value on a refinance. Some might allow 90% but that's pushing it.
that's not true....you could do a FHA 203K
I can recommend a mortage professional for you to speak with
Well yes it's a mortgage backed security. But are they going to give you this loan if you don't have sufficient equity in the house?
That is the point I was trying to make.
ETA: Looks like it will allow up to 115% equity. That's not bad. But if your house is only worth 330-340k and you owe $300k and want to borrow 100k that's not going to work.
You still need a lot of equity to borrow 100k. Hopefully the OP has it.
Guidelines
I think you have your terms mistaken? A mortgage backed security is what you get after you securitize a pool of mortgage loans and issue certificates to investors. This is the case whether or not the mortgage is backed by the FHA. An FHA rehab loan takes into account what the value of your home will be after the renovations.
Message edited 2/2/2012 9:03:19 PM.
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| Posted 2/2/12 9:02 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Financing a home remodel
Posted by angrybird
Posted by ave1024
Posted by Beth
Posted by ave1024
For that amount the only way you will be able to do this is if you do either a home equity line of credit or another refinance with cash out.
How much equity do you have in you home? You are going to need a lot because most banks require you stay within 80% loan to value on a refinance. Some might allow 90% but that's pushing it.
that's not true....you could do a FHA 203K
I can recommend a mortage professional for you to speak with
Well yes it's a mortgage backed security. But are they going to give you this loan if you don't have sufficient equity in the house?
That is the point I was trying to make.
ETA: Looks like it will allow up to 115% equity. That's not bad. But if your house is only worth 330-340k and you owe $300k and want to borrow 100k that's not going to work.
You still need a lot of equity to borrow 100k. Hopefully the OP has it.
Guidelines
I think you have your terms mistaken? A mortgage backed security is what you get after you securitize a pool of mortgage loans and issue certificates to investors. This is the case whether or not the mortgage is backed by the FHA. An FHA rehab loan takes into account what the value of your home will be after the renovations.
I was implying that this type of financing would need to be done with the house being the collateral. In other words it is unlikely the OP would be able to get unsecured financing for that amount.
While I do realize that they will take the value in after renovations, unless you are actually adding square feet it is unlikely an appraiser will significantly increase the value of the house just by doing cosmetic upgrades. Sure you will get a bump but it may not be as much as you would think. I am sure an appraiser can chime in with this better than I can.
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| Posted 2/3/12 12:06 PM |
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