Financing in California>Question Details

Kiskande, Home Buyer in California

Can i get a loan on an unfinished home?

Asked by Kiskande, California Sun Feb 7, 2010

My husband and I are interested in a new contruction, unfinished home. The current owner ran out of money and could not finish the construction. The framing, electrical and plumbing are done. It obviously still requires a lot of work. My husband and i own a property and have excellent credit. We would like to keep our first property and rent it out. This would be our second home. What kind of loan (if any) could we get on a house like that?

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The investment property will be an issue. Most rehab programs are for primary residences. If this is a foreclosure, you may want to check to see if it's a fannie mae forclosure and run it through HomePath (investment rehabs to 90% Loan to Value). Other than that, it will take private financing and possibly flipping it into a section 8 home where you can get government funding to repair the home. Even as a second home, I don't think it's possible. Check with the bigger banks (Suntrust, Wells Fargo, Chase, BOA)
0 votes Thank Flag Link Mon Feb 8, 2010
HI Kiskande,
I am a loan officer with PRMG, Inc.
We are a direct lender serving all of California with FHA,Conforming & Jumbo products.
Currently construction loans are not available with us or any other conventional lenders.
Your only option for a loan on the subject property would be a seller carry or hard money construction loan.
An FHA 203k loan is not an option without an occupancy permit issued.
I would recommend re-financing your owner occupied home where it might be possible to get cashout of your equity.

Feel free to contact me for a confidential evaluation.

Thadeus Brewer
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0 votes Thank Flag Link Mon Feb 8, 2010
Your bets bet is tio meet with a local and trusted mortgage broker or bank. Avoid the internet lenders. You may be able to get a construction to permanant loan or perhaps a fha 203k . The loan officer can tell you exactly what is available given your credit and financials. good luck with your purchase.
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0 votes Thank Flag Link Mon Feb 8, 2010
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