Tee Carter, Home Buyer in Saint Petersburg, FL

If I purchase for 65K, property appraises for 96K, and my pre-qual, underwriting approval is for 140K, can I

Asked by Tee Carter, Saint Petersburg, FL Fri Feb 22, 2008

get money off top to fix and repair?

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Answers

11
If you don't know don't give advice.....

The allowable repairs or improvements are very flexable. You can't add a pool but you can repair one that already exists. The current appriased value would not disqualify the property from the 203K program.
1 vote Thank Flag Link Sun Mar 9, 2008
Here is a link for the 203 (K) Loan which allows you to apply for one loan based upon the antipacted appraised value upon completion of repairs.
http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm
1 vote Thank Flag Link Sun Feb 24, 2008
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
You've already been told to ask your lender. But also make sure you are absolutely truthful with the lender, about what you're doing. You want to do all you can to avoid any appearance of mortgage fraud.
1 vote Thank Flag Link Sat Feb 23, 2008
You definitely need to speak with a specialist. I am not certain of this, BUT, if the property is already appraising for $31K more than you are paying for it I believe it may not qualify for a 203K. Also, there are a number of required improvements for a 203K loan which may not be on the list of things you were planning to do so make sure you research this carefully.
Web Reference: http://www.wnyhomevoice.com
0 votes Thank Flag Link Sun Mar 9, 2008
Yes. Get K203 Program. Talk to your Mortgage person who has done many of the 203K financing program

Ben
0 votes Thank Flag Link Sun Mar 9, 2008
The only way to legally get cash back above the sales price is with a renovation loan FHA 203K is likely the best avaialable option. They offer a streamline K that was referenced as somthing Wells Fargo does. Speak with a lender that offers the 203K and more imoportantly speak with a loan officer that understands and uses the 203K loan. They are more complicated and if someone doesn't know what they are doing the transaction will be much more difficult than it needs to be.
0 votes Thank Flag Link Sun Mar 9, 2008
The real question is if the property sold for $65,000 why would it appraise at $96,000 ?? There is a REAL
answer in todays economic world which is - - - the property is only worth waht someone will pay for it. That is $65,000 in an open market transaction. Be careful you don't spend $35,000 to make the property wotth
$96,000 SOMEDAY. There are a lot of folks who are holding wonderful appraisals and would Love to be able to get 75% of that value. That is a whole heap of the reason we are in such a bind in St. Pete. Please remember that old adage of value only being what it is worth to a willing buyer (not many) and a willing seller (way too may) . . . . . . . . . . In a cold market you can often buy a well 'fixed up' property for close to the cost of a fixer-upper.
0 votes Thank Flag Link Sun Mar 9, 2008
I believe HUD has a mortgage program that allows you to
pull money out for repairs on a home that you are buying.
Ill see if I can find a link for you.
0 votes Thank Flag Link Sun Feb 24, 2008
Nathan is correct on talking to the bank and see what they will approve but Crystal, unfortunately here in Florida a permit will have ot be pulled for any major and sometimes minor repairs and that means inspectors and contractor involvement. My suggestion is check out a good General Contractor or licensed Handyman (if it minor repairs), they can give you and the bank a good estimate on the scope of work and will handle alot of the paperwork but the key is a good contractor or handyman...there are alot of them that do not live up to their obligations.
0 votes Thank Flag Link Fri Feb 22, 2008
Wells Fargo Mortgage has a product just for that. You get two draws, and at least in the KC area, you don't have to have inspectors.
0 votes Thank Flag Link Fri Feb 22, 2008
You need to talk to your lender about that. I believe that you can take a little out as the appraised value is more than the sales pice but as to how much that will be up to the lender. Call them and ask.
0 votes Thank Flag Link Fri Feb 22, 2008
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