Jc Scott, Other/Just Looking in 55075

HELOC on FHA?

Asked by Jc Scott, 55075 Sun May 10, 2009

Hi,
I will be closing on a standard FHA loan soon and am wondering when I am able to get a HELOC (or other cash out loan) on it. The loan amount is $108k and the appraisal was $125k.
Thank you.

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5
Voices Member, , Red Wing, MN
Thu Oct 15, 2009
If you wee to wait the year, and if you were able to ge the appraisal to come in you would most likely be able to get the HELOC, BUT your best bet is to refinance to get the cash out. The reason I say that is that if you qualify for a conventional loan at 80% then you would also lose your Mortgage Insurance that you have on an FHA. You would save the next 4 years of Mortgage Insurance and get your money out. If you have any other questions feel free to ask at sean@spectrafinancial.com
0 votes
Ace, , 50123
Mon May 18, 2009
LTV is your big issue presently so your home needs to appreciate or lenders need to reduce the guidelines. I don't see either happening with today's market. But it could change tomorrow.
0 votes
Aaron Dickin…, Agent, Champlin, MN
Wed May 13, 2009
You should be able to a year from now though I don't think that prices will move that far that fast unless you do remodeling that improves value.
Web Reference:  http://www.AaronSOLD.com
0 votes
Jc Scott, , 55075
Wed May 13, 2009
Yeah, I know 100% financing isn't an option.
But, hypothetically, let's say in a year we get a $150k appraisal. Would it be possible to get around $12k out on a HELOC since that would only be 80%? I have been told both yes and no, so I wanted to get an opinion from this educated forum.
Thanks.
0 votes
Aaron Dickin…, Agent, Champlin, MN
Sun May 10, 2009
I don't know of anyone doing 100% HELOCs.
0 votes
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