Home Buying in Phoenix>Question Details

Trulia Phoen…, Home Buyer in Phoenix, AZ

Can you get a mortgage to cover the purchase of a new home plus extra for debt payment or renovation costs?

Asked by Trulia Phoenix, Phoenix, AZ Mon May 13, 2013

Help the community by answering this question:


You have a few options:

*FHA 203k or the
*FHA 203k Streamline
*Fannie Mae's Homepath Renovation loan (is an option for any homes owned by Fannie Mae)
I think USDA may even allow some renovations, and that is 100% financing for rural areas

Then there are a few conventional products out there that are 'niche' loans offered by specific lenders intended to compete with the above. They are all fantastic options if you have at least $5k in renovation costs.

There are a few down payment assistance programs that you could look into as well, that could be used with the above loans, particularly the Neighborhood Stabilization Program. If you get help with your out of pocket expenses, you could then use that cash money that you would have used towards your down payment to pay off some of your debt instead.

You cannot finance your debts, however....once you have enough equity in your home, you can get a home equity line of credit, do a cash out refinance or sell your home and use that equity to pay off your debts. I work with renovation clients all the time....even on mobile homes!

Please feel free to contact me for assistance with buying or selling....

Jessica Sulliman
0 votes Thank Flag Link Wed May 15, 2013
This is a good question for a lender since there are a lot of variables that can fall into the scenario.
0 votes Thank Flag Link Tue May 14, 2013
Yes you can with fha 203k. I have done several of these loans in my 15 years as a loan officer. Call me tonight and we can get the process going for you.
0 votes Thank Flag Link Mon May 13, 2013
There is the FHA 203K streamline loan ($35,000 or less towards renovation) or the FHA 203K Full line ( up to the total amount of full FHA loan amount towards renovation and any payoff and purchase). I have done these two loans many times.
Please give me a call to discuss . I look forward to hearing from you. I am a Mortgage Banker in metro Phoenix, AZ. I lend in both Arizona and California where I will be pleased to help you. If you or someone you know is looking for financing options, please feel free to contact me or pass along my information. 623-340-0934 Korene Clopine-Seaman NMLS # 218520 KLCSLoanTeam.com We are Direct Lenders, WE CLOSE LOANS!
0 votes Thank Flag Link Mon May 13, 2013
NO - consumer debt cannot be paid off with a home loan for the purchase of a home. That type of lending was eliminated in he 2007 to 2009 time period with sub-prime lending.

Renovation loan yes. As mentioned FHA 203K and 203K streamline. The streamline des have a $35,000 renovation cost limit and other limits. The regular 203K does not have those limits. Because both loans are backed by FHA they tend to be expensive as compared to conventional lending.

Dave Jackson
Loan Officer/Real Estate Asset Planner
Financing Solutions for Arizona Real Estate since 1993
American Financial Lending, Inc.
20860 N. Tatum Blvd, Suite 160
Phoenix, AZ 85050-4277
602 277-3800 w
602 631-9788 f
602 524-2401 c
602 912-9438 h
davej@aflhomeloans.com http://www.aflhomeloans.com
0 votes Thank Flag Link Mon May 13, 2013
There is a rehab loan yes. There is an FHA and a conventional product. The FHA 203K I am very familiar with I actually used one personally. You can finance up to $35,000 towards renovation. Please give me a call to discuss and I can refer you to a lender who can answer these exact questions for you and put you on the right path. I look forward to hearing from you. Tiffany : )

Tiffany Carlson
Associate Broker
Realty One Group
Cell: 480-215-1105
Fax: 480-302-5885
0 votes Thank Flag Link Mon May 13, 2013
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