Home Buying in Illinois>Question Details

Pinkturtles99, Home Buyer in 60542

renovation loan after close?

Asked by Pinkturtles99, 60542 Fri Apr 8, 2011

What are some options for financing a renovation loan after closing?

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Sorry to hear about your difficulties with Wells, although I'm not surprised. Sounds like they forgot to provide a list of thse repairs to the appraiser, and to tell the appraiser to appraise the house "subject to" those repairs. Sounds like the home is a foreclosure. If you're not doing the repairs, will the house still meet the minimum standards for liveability? Make sure you ask your loan officer at Wells. Hopefully it will all work out for you in the end.


FHA has been doing 203k's for purchases and refi's. This is nothing new. You may want to find some new lenders to do business with out there in NJ. Someone who knows program availability.

0 votes Thank Flag Link Sat Apr 9, 2011
We tried to do the purchase price plus renovation. We have perfect credit, are putting 20% down, and were approved for more than we intend to spend. We had the inspection done before making an offer and also met wtih an architect to make sure what we wanted to do could be done and he drew up plans. Everything was in place and mvoing along but the appraisal was way off. He did it based on current and not future value as he was supposed to. Because we have to close by April 27th, the seller is a bank, there is not time for another appraisal according to our lender. We are infuriated. I can't sleep because of it and have a constant tension headache. Our lender said that after we close, we could do a renovation loan. She said the loan amount would be up to 95% but paying pmi, of whichever is lower: (a) after improved value or (b) acquisition which is total liens plus total cost of renovations. We don't know what this means and she won't go into more detail until the time comes. I can tell you that the purchase price is $207K and the cost of our renovations is $165,092. The appraiser came back with a value of $207K, the EXACT amount of the purchase price!!! That doesn't make sense! I even emailed the appraiser and asked him if he based it on current value or future market value. He replied "Current". I showed this to the lender and she said she would fight it but it was likely we woldn't close then. She also said that he would have to have been off by over $100K. The contractor and architect and our realtor believe it is wa off too. If we don't go through the same lender for the renovation loan, Wells Fargo, maybe we'll go through a broker. No wonder the housing market is the way it is. A person with a two week certificate that can't do his job blew this for us. I'm so sick of people being lazy and not doing their jobs.
0 votes Thank Flag Link Sat Apr 9, 2011
I hear the FHA is going to be offering an FHA203K refinance option soon, which would entail one loan that covers both current value and renovation costs. it is going to be a wonderful product for people who need to do some updating prior to putting their home on the market. Unfortunately I don't think it is available just yet, but by all means contact a mortgage professional and find out!
0 votes Thank Flag Link Sat Apr 9, 2011
thanks. Is that different than a purchase price plus renovation loan?
0 votes Thank Flag Link Fri Apr 8, 2011
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