Financing in Plymouth>Question Details

Danielle Mar…, Home Buyer in Plymouth, MA

Home equity loan or 203K?

Asked by Danielle Marks, Plymouth, MA Tue Aug 19, 2008

We are going to purchase a bank owned property, which is better- getting a home equity loan on the house right away, or using a 203K mortgage? How difficult will it be to get a home equity loan if the property is assessed for more than what we are paying?

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I'm wondering if you are confusing assessed and appraised. The "assessed" value is what the county's evaluation is for tax purposes. The "appraised" value is what the lender arranges for to determine whether or not the property is worth what you agreed to pay for it. Those things can be easily confused. I think I agree with Aaron, though, in these trying times, the HELOC loans are challenging at best. The 203K might be a better bet to accomplish your goal.
0 votes Thank Flag Link Tue Aug 19, 2008
you will only be able tio get a home equity line on a property you already own. the market for these is shrinking and some are adding "seasoning" which is they require you to own the property for a certain amount of time before they will loan money on it. Using your 203k may be easier if the property meets its guidelines. Check with a trusted mortgage broker and not a an interent broker. good luck
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Tue Aug 19, 2008
We specialize int 203K loans

call or email
First Capital Mortgage
Tino Martinez
630-844-8140
tinomax@mchsi.com
0 votes Thank Flag Link Tue Aug 19, 2008
The assessment on the house has nothing to do with the value of the house in a buyer or lender's eyes, so it is a moot point. Lenders will not give you more money than what you purchased it at for some time so a home equity loan will not be doable. Your only bet is FHA 203k.
0 votes Thank Flag Link Tue Aug 19, 2008
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