If we have a loan for 200K and we get a house for 180K can we use the remaining to install a pool? How does that work?

Asked by Olga and Jamey, Yuma, AZ Thu Apr 26, 2012

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Deborah Garvin’s answer
Deborah Garv…, Mortgage Broker Or Lender, San Diego, CA
Tue May 1, 2012
@Jesse is correct; however, I don't see many lenders allowing a escrow holdback these days. I agree that I would start with the pool companies. They can probably direct you to financing options faster than a mortgage professional.
0 votes
Jesse Ortiz, , Yuma, AZ
Tue May 1, 2012
If you are buying a new construction home for 180k you can finance 20k for a pool as long as appraised value is in accordance with your loan type(FHA,VA,CONV) you would finance 200k. We have different Escrow Holdback programs available. Please feel free to give me a call if you have any questions on this.

Jesse Ortiz
Senior Loan Officer
Office: 928.726.7266
Cell: 928.210.9334
jesse.ortiz@novahomeloans.com
novahomeloans.com/jesse.ortiz
NMLS: 211615
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Olga and Jam…, Home Buyer, Yuma, AZ
Fri Apr 27, 2012
Thanks everyone! You have answered our questions.
0 votes
Georgina Dal…, Agent, Scottsdale, AZ
Thu Apr 26, 2012
The home has to appraise for 200k in order to have the equitable difference. Check with the Pool companies financing options. That may be a better opportunity to get what you want.
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Elias Anguia…, Agent, Vacaville, CA
Thu Apr 26, 2012
If you were approved to purchase a home valued at $200,000 then this loan only applies to the purchase of the home and nothing else even if the home you like is being sold for $180,000.. You would have to apply for a separate loan to install your pool and see if you would qualify after you buy the house. Even if your were approved for a $200,000 loan but you only purchased a home for $180,000 then that would be your loan NOT $200,000.
0 votes
Jason Coleman, , Phoenix, AZ
Thu Apr 26, 2012
No you would need to get a second mortgage for the 20k. Usually the second will only allow up to 90% LTV
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Brian Carden…, Mortgage Broker Or Lender, Scottsdale, AZ
Thu Apr 26, 2012
Hi Olga and Jamey -

Think your question needs a little clarification in order to get the right answer. When you say that you have a loan for $200K, do you mean that you have been pre-approved or pre-qualified for $200K? If that's the case, then your loan will be adjusted down to the loan-to-value (LTV) that you are approved for (i.e. FHA = 96.5%, VA = 100%, etc.) based on the lesser of the appraised value and purchase price. So if your purchase price is $180K and your using FHA financing at 96.5% LTV, then your base loan amount is $173,700. You will not be able to use the extra $20K to put in a pool. I hope that addresses your question, but if I guessed at your question incorrectly, please let me know or put another post in the forum for another answer.

Brian Cardenas
Sr. Mortgage Consultant
AmeriFirst Financial, Inc.
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