Financing in 84102>Question Details

Scott, Home Buyer in

Financing the purchase of a house and the building of a garage.

Asked by Scott, Thu Feb 2, 2012

I am looking to purchase a house and was interested in putting in a two car garage in the backyard. I figure the garage will cost around $25,000. What kind of low cost financing is available for the construction of a new garage. Will a mortgage lender allow me to include the cost of the garage in the purchase of the house? What about bridge financing? Any creative ideas will be appreciated.

Thanks

0 votes Share Flag Financing in 84102

Help the community by answering this question:

Answers

4
I cannot answer your question better than Deborah - I can tell you however that I do specialize in 203k and Homepath Renovation loans. If you would like to discuss your situation in more detail - please do feel free to reach out!

Justin Coleman
Security National Mortgage
NMLS#283650
justin@justin-coleman.com
http://www.snmc.com/justincoleman
1 vote Thank Flag Link Fri Feb 3, 2012
I work with lenders that do FHA 203k all the time. Just make sure that the lender you choose actually does 203k, and does them frequently. Not someone who has them available. I may even ask how many they have done in the last 6 to 12 months (don't expect a VERY high number, as they are not all THAT common, but make sure they have closed several recently). I do a lot of work in the Salt Lake and Utah Counties, and have heard of Justin Coleman. Everything I hear is great. Maybe give him a call and see what you think.

Also BEFORE you get out of your due diligence period in the purchase contract make sure you have the loan fully approved. FHA 203k have certain items they can cover, especially if you are doing a streamline. Just don't lock yourself into a purchase, and then figure out that the loan won't work...

Micah Olson
Keller Williams South Valley
801-805-4900
0 votes Thank Flag Link Fri Feb 3, 2012
Scott, As noted, a FHA 203k renovation loan will allow you to incorporate the building of a garage into the mortgage financing IF the "after improved" value of the property warrants. In other words, say you are buying the property for $100,000 "as is". You get the plans and specs for the garage and they are given to the appraiser; who will then evaluate a "future value" of the property. As long as the "future value" of the property supports the purchase and the constructions costs, the FHA will allow you to finance up to 110% of the "future value".

Qualification for a FHA 203K is exactly the same as for a regular FHA; however, there are few lenders who work with the 203K. Your first step is to find a mortgage professional who specializes in the 203K. They can educate and direct you on the best course of action. Best to you!
0 votes Thank Flag Link Fri Feb 3, 2012
You can use an FHA 203K loan to purchase the home and include the cost of building the garage in the loan.
0 votes Thank Flag Link Thu Feb 2, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer