I assume it is because the property type was actually a condo (townhouse is not a legal description), and there was a risk based add-on, probably for it being a condo with an ltv more than 75%. They should have caught that from the appraisal and adjusted the price accordingly before having docs sent out to you for signature. I would complain to the loan officer to see if they can waive the extra point.... more
There are several options in financing repairs to a home you would be purchasing, whether it be your primary or an investment property. Through FHA and conventional lending programs, I can lend on the "after-repair" value, which in turn allows the borrowers to build equity with some simple upgrades or repairs before stepping foot into the property.
We also have partnered with several of the large home renovation retail stores, including Lowe's, Home Depot and Sears to allow our clients to price the additional costs, set up a general contractor who will be approved and to allow us to see the maximum financing options for each individual situation.
I would be more than willing to discuss these finance options as they apply to your situation. My website is listed below which includes many home buying guides, renovation loan programs, an online application, and also my contact information.... more