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.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
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) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Senior Mortgage Banker
3490 Piedmont Road, Suite 750
Atlanta, GA 30305
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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 email@example.com to receive his full contact information.
Gregory J. Peters
Sales Manager | Evolve Bank & Trust
11605 Haynes Bridge Road Suite 125| Alpharetta, GA 30009
770-255-3835 | fax 678-387-1435 | cell 770-864-7926
Apply online! http://www.gregoryjpeters.com/
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.