Home Buying in Fort Wayne>Question Details

A.B., Home Buyer in Fort Wayne, IN

Getting a loan that is larger than the cost of the house..

Asked by A.B., Fort Wayne, IN Thu May 2, 2013

My husband and I will be looking at purchasing a house soon, and I was wondering if this is possible.. Say whatever house we are looking at costs $130,000.00. Is it possible to bump the loan up to $150,000.00, for other expenses like new furniture, outdoor tools, etc.. This is our plan, and before we go any further, I would like to know if this is even possible. Thank you!

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Answers

6
Best way to accomplish your goal is to get a FHA 203k loan. I have helped other do this For more information or help with this, call, text or email to chip@chipperry.com or 260-341-5038..
0 votes Thank Flag Link Fri May 3, 2013
The previous answers are good with a little clarification: Home mortgage lenders base their loan size on THE LESSER of the purchase price OR appraised value. In other words Even if the home appraises for $150,000, or more, your loan will be based on the $130,000 purchase price; if you offer $150,000 for the home but it only appraises for $130,000 your loan is then based on the $130,000 appraised value. Always the lesser of the two.
As previously mentioned there are a few creative loan options, that you may qualify for, such as the FHA 203K loan but other than for repairs or work performed by a contractor you may be able to use the funds to purchase kitchen or laundry appliances.
If you are purchasing in one of the smaller communities surrounding Fort Wayne, that qualify for USDA financing you may be able to borrow at zero down payment (or sometimes up to 102% of the purchase price). Then use the cash you had put aside for your down payment to buy the other items you want for your home.
Contact me for more suggestions. I have an extensive 26 years of local real estate experience.
Ken Richardson
Ken Richardson Realty Company
Office: (260) 422-1888
Cell: (260) 413-6058
E-mail: ken@kenrichardsonrealty.com
Visit my website: http://www.kenrichardsonrealty.com
0 votes Thank Flag Link Fri May 3, 2013
The situation of getting additional funds for furniture, tools, etc. is unlikely, but a good lender may be able to suggest some options. Feel free to contact me if you would like some lender suggestions!

Nathanael Wilson
1st Class Hoosier Realty, Inc.
260-438-3437
NathanaelWilson.realtor@gmail.com
0 votes Thank Flag Link Thu May 2, 2013
Good advice given by Maria and Kevin! If you'd like to be put in contact with a local who is reputable, and specializes in FHA 203K loans, let me know.

Darren Schortgen
Schortgen Realty
260-385-7603
Web Reference: http://SchortgenRealty.com
0 votes Thank Flag Link Thu May 2, 2013
The lender will loan you only for the amount that the property is appraised for minus your down payment.

A mortgage is intended for the purchase of a property and not to purchase personal items as you mentioned.

You can get an amount for more than the appraised with 203K loan as mentioned by Kevin. However, 203 K loan is for renovation or rehab loan.

A loan officer should give you an advice on this arena.

Best.

Maria
0 votes Thank Flag Link Thu May 2, 2013
Not for furniture, tools, etc... - Typically, the lender will lend you the lesser of the appraised value or the purchase price of the property. If the property needs physical work, you might qualify for FHA 203k loan which would require licensed contractor bids to fix the property. With that type of loan, you might be able to borrow more than you pay for the home.

My advice is to contact a reputable mortgage lender in your area and qualify with them before you go house hunting -
0 votes Thank Flag Link Thu May 2, 2013
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