Financing in Atlanta>Question Details

Don Richards…, Home Buyer in Atlanta, GA

Renovation/Refinance options in Atlanta

Asked by Don Richards-boeff, Atlanta, GA Tue Apr 9, 2013

We're looking to understand our renovation/refinance loan options in the Atlanta area for the following situation. Appreciate the insight in advance.

Current mortgage: $259K/$46K 1st/2nd 80/20 (Freddie Mac FHA)
Renovation cost, fixed bid: $148K
Cash: $38K
Est appraised value post reno: $520-560K

Would like to fit into $417K conventional, but open to other options (80/20 jumbo, others?). Ready to move quickly, finalized plans in hand and headed to permitting approval.

Thanks, D

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Answers

7
Wells Fargo and SunTrust agents in Atlanta both said no to this style renovation loan ("Not even in our portfolio."). Fidelity said yes. Looking for additional options.
1 vote Thank Flag Link Tue Apr 9, 2013
Also, if your 2nd mortgage company agrees to it, the current 2nd mortgage could be subordinated if your amount needed would exceed the $417,000 cap. The combined amount of the new 1st mortgage and current 2nd mortgage would have to be under 90% CLTV.
0 votes Thank Flag Link Wed Apr 10, 2013
Hi Don,
A Renovation mortgage for your situation might be possible. As long as your current 2nd mortgage was used to purchase the home, both the 1st and 2nd can be rolled into a new Renovation mortgage. For a Conventional loan in Atlanta, the maximum loan amount will be $417,000.

Prospect Mortgage is currently the 2nd largest Renovation lender in the country. You may have even seen our recent commercials on HGTV and DIY.

With a Renovation mortgage, a new 2nd mortgage would not be an option though. On this particular program, we can exceed 80% LTV so long as the loan amount remains under $417,000.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Wed Apr 10, 2013
Hello Don. Yes, Fidelity has a conventional loan product that is available for renovation. Email me and I will provide you with the details and an estimate for your project.

Warm regards,
Kim Jones
Senior Mortgage Banker
Fidelity Bank
3490 Piedmont Road, Suite 750
Atlanta, GA 30305
CELL/TEXT: 678.468.4046
eFAX: 678-829-0612
CLICK TO Apply Here!
EMAIL: kim.jones@lionbank.com
FIND ME ON FACEBOOK: http://www.facebook.com/KimJonesHomeLoans
FIND ME ON LINKEDIN: http://www.linkedin.com/pub/kim-jones/a/a68/109
NMLS# 545217
Web Reference: http://www.kimdjones.com
0 votes Thank Flag Link Wed Apr 10, 2013
Don,

I have a Construction Specialist that I partner with that is local to Atlanta, very aggressive in structuring a loan that meet your specific needs as stated in your post and works for a well-known bank that is not the 3 you've noted in your follow up post.

Message me at gpeters@getevolved.com to receive his full contact information.

Thanks,

Greg

Gregory J. Peters
Sales Manager | Evolve Bank & Trust
11605 Haynes Bridge Road Suite 125| Alpharetta, GA 30009
gpeters@getevolved.com
770-255-3835 | fax 678-387-1435 | cell 770-864-7926
NMLS#: 162522

Apply online! http://www.gregoryjpeters.com/
0 votes Thank Flag Link Tue Apr 9, 2013
The loan amount on the first mortgage dictates the jumbo loan amount. If the first mortgage is $260 plus $150, that's $410,000 which is below the $417,000 max. The second will need to be subordinated. I'm sure they'll be okay since you'll be increasing the property value and reducing their risk.

This is not a construction loan. It is as you said. It is a renovation loan. HUGE difference. Construction loans are from ground up Mr. Connelly. This structure is already in place. You can still use the same banks that he stated but you have access to others too: Credit Unions, Community Banks, Chase, BBT, BOA, ABC, LMNOP...

80/20 loans no longer exist. Your loan will be 79/88 ratios. 79% LTV and 88% CLTV (combined loan to value). I used the $520k value. Stay under 80% to avoid MI. A resubordination fee will apply to the second (up to $400) and may delay the closing up to 30 days, so get started on that asap. If the lender allows it, and the value is higher than $520k, ask if you can roll an extra $7,000 (difference between 417k and 410k) to pay for closing costs and/or to put towards the second mortgage to pay it down. The rate on the first will be lower than the second.

Make sure you gave yourself an extra 10% contingency for repairs over what you estimated. You can't go back and ask for more later. I'm sure you knew that, but for others who read this, may not.

DO NOT use your cash to pay off the second mortgage unless your retirement is set. If the bank tells you that you have to do so, get another opinion.

You'll need to go Fannie Mae or Freddie Mac. FHA limits are too low for this. The VA may also have options if it applies to you.
0 votes Thank Flag Link Tue Apr 9, 2013
What your really after is a construction loan and there are a few institutions handing them out again finally. You will need a full set of construction documents and usually two fixed bids from different contractors. I know that Wells Fargo and Suntrust are doing both owner occupied and investor construction loans. If you would like more details or a referral to a mortgage consultant I've worked with recently on construction loans I would be happy to make the connection for you.
0 votes Thank Flag Link Tue Apr 9, 2013
Michael, this would be a renovation loan, not a construction loan. Construction loans are projects built from the dirt up. This is just imporovements to their home.

KIM
Flag Wed Apr 10, 2013
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