Lynne,
The trick on a refi- is you have to go by current purchase price. If you are interested I would call Meghan Knoy at 928-925-6082. She in honest and will let you know your options not push you into a loan. 203k Loans are not that bad they just take time.
Good luck,
Brad

Hi Lynne,

The people who claim that these 203k loans are a nightmare are just not familiar with them.

It takes additional work an everyone's part, but they do work.

My wife has been the FHA Queen for years and we have done many over the years.

You just have to find the right Realtor/Lender combination.

Good Luck!

Stew

I called several mortgage companies today and was told that new restrictions prevent the lenders from being able to do a refinance on a property until at least 6 months after the initial purchase. This makes it impossible for us to put a conventional mortgage on this property right away.

I've been told by so many people that the rehab loans were a total nightmare that I really hate to go that route if I don't have to. The person who made an offer on the property just before us cancelled his contract because of the difficult rehab requirements.

I was told by several mortgage brokers today that my best option to quickly put some financing on the home would be to put a home equity loan on after closing. We will own the home free and clear at that point so we shouldn't have a problem getting an equity loan.

The B of A offered to give us a home equity loan of up to 70% of the appraised value at 2.34 + prime and then after 6 months we can convert that to a traditional mortgage an pay off the equity loan. I haven't called any other banks yet but will do that to make sure I have more than one source willing to lend us the money before we close.

Lynne,

Ask your Realtor or Preferred lender if you can buy the home using an FHA 203k rehabilitation loan to purchase.

This program allows you to borrow to make improvements when you purchase the home.

You can read more about it here: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

All The Best

Stew Keene
Ph (480) 220-7491
Fax (866) 711-8573
StewKeene@yahoo.com
Keller Williams - Scottsdale, AZ
2008-2009 Master of Real Estate award recipient

There is no problem in getting financing on forclosed homes & could be done the next day. It would be like
a regular deal.

Lynne-

The only problem you should have with your new mortgage would be if you were trying to base the loan on the new value of the home. As long as you are okay using the purchase price + value of repairs as your base price of the home and then mortgaging whatever percentage of that you need, you should be fine. The problem you would have would be if you were trying to use the appraisal value or the subject-to value after repairs to base your loan on. Possibly to avoid mortgage insurance or to cash out of the equity. For those reasons, you might have a problem.

If you need help qualifying for the new mortgage, please let me know.
Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com

Apply Online @ Luke.Allison@flagstar.com