Financing in 60463>Question Details

Buyer2222, Home Owner in 60463

Construction Financing?

Asked by Buyer2222, 60463 Fri Dec 23, 2011

I recently purchased a home and now I am looking to put on an addition. I have 30k, but need an additional 40k to finance the construction. I do not have any equity in the home yet, as I just bought it six months ago. I would like to borrow 40k and roll it all into one mortgage after construction. I have pretty good credit, and recently married, I have dual income. Any suggestions?

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Rob Weber’s answer

I see you're local to me.

A 203k is certainly the way to go as stated earlier. I"m sure you also know by now that your home's recent purchase is creating a seasoning issue on any equity you have so a home equity line is out of the question.

I do a LOT of these loans (I've given 10 pre-approvals/applications in the past two weeks for them), I would be happy to assist you. You may contact me tomorrow if you'd like until 2PM at my cell number (my website and my profile has it) otherwise I'll be available all day Monday.

The thread below has a long post about the 203k to educate yourself on it. The very bottom post is mine and the very top one.

Additionally, I'm a published writer on this subject so you don't have to worry about me "bluffing" my way through it like my boss likes to say (in reference to other loan officers :).…
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1 vote Thank Flag Link Sat Dec 24, 2011
A 203K is the answer for you, plain and simple. As long as the property will appraise with "future value" (after improvements) of up to 110% of the value, you will most likely qualify. The 203K is a great loan because it is an "all in one" loan and you won't have to refinance out of a construction loan. Contact a local mortgage banker who specialized in 203K loans to get specific information. Wells Fargo does 203K's; however, their systems are pretty chaotic and I strongly suggest local...banker over broker also. Best to you!
0 votes Thank Flag Link Fri Dec 23, 2011
whatever loan you get the house will have to appraise out for the amount you borrow plus your first mortgage loan. I would recommend a home equity line of credit angie only have to pay interest on it however if you do not have tenough equity in the home any bank loan will be possible. you may wanna consider a loan from your 401 k or I r a if you really want tro do the addition
0 votes Thank Flag Link Fri Dec 23, 2011
You should consider a 203K loan...but eligibility would depend on many factors. Call my husband, Jim, at 847-778-9689. He's a loan officer with 23 years experience. If it can be done, he can do it!
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0 votes Thank Flag Link Fri Dec 23, 2011
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