Home Buying in Modesto>Question Details

Tim, Both Buyer and Seller in California

If I buy a foreclosure for $100k under market value what will a lender finance?

Asked by Tim, California Wed Apr 30, 2008

Assume the house is worth $250k and my purchase price is $150k. At the time of purchase can I borrow more than the sales prices for some home improvements or do I have to wait to close and refi or go the home equity loan route?

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Hi Tim, I recieved this answer from my Lending partner, hope it helps. The Coach
"No you are not allowed to borrow more than the purchase price......unfortunately.....you would have to wait until the value increased to pull money out thru either a refinance or a credit line."
Web Reference: http://askEB.com
0 votes Thank Flag Link Wed Apr 30, 2008
The lender will require an appraisal of the property. Market value is a completely seperate issue. There are instances where a lender will finance more than the purchase price, but those are very few and far between. Usually a home repair credit line would be necessary. It reaally depends on the appraised value, not the market value.
0 votes Thank Flag Link Wed Apr 30, 2008
Hi there Tim, I will depend on the lender?
If you like to talk to a lender to figure out some options let me know
Kind Regards
Michael Barron
0 votes Thank Flag Link Wed Apr 30, 2008
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