I need more bigger home should i have to sale current or take loan construct more rooms. can i get loan for it?

Asked by Merry, Anaheim, CA Mon Jun 11, 2012

I need more bigger home.i have FHA loan if i sold current i will not get FHA loan Again.should i have to sale current or take loan for construct more rooms.my lot is R2 zone we can build even secon unit. can i get loan for it?

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Robert Chomentowski’s answer
Robert Chome…, , San Diego, CA
Mon Jun 11, 2012
If you sell this house and pay off the FHA loan, you can get another FHA loan. The only loan you could get for adding on to house house would be a equity line second mortgage. And they will only go up to 80% loan-to-value of your current property.
1 vote
Claudia Mull…, Mortgage Broker Or Lender, Fremont, CA
Fri Jul 13, 2012
From your question, I cannot see why you would not get another FHA loan.
There is an FHA construction loan called a 203k loan.
It allows you to borrow money at your future value after improvements.
I would contact someone who specializes in those loans in your market place.
0 votes
Terry Bell, Agent, Santa Rosa, CA
Wed Jun 13, 2012
You should sit down with a good loan broker and discuss your options. Not knowing what equity you have in your home, or your assets in the bank make it impossible for me to do more that suggest that you might look into the possibility of renting your house and buying a new home in this low interest market. You should also have a agent give you some comps from your area to see if you would get your money back if you sold your home with a new addition. Do the math and take your time. Good luck!
0 votes
Libardo Quin…, , Newport Beach, CA
Wed Jun 13, 2012
Good morning Amir,
Selling or rebuilding is ok, the question is how big do you want to rebuilt, will the current home has space to add more rooms, do you have equity? many of those questions can be easily review and see what is the best action plan and options available to you.
Here at Kinecta Federal Credit Union (Boeing), I will be able to help you.
0 votes
Glenn Gaspar, Agent, Signal Hill, CA
Mon Jun 11, 2012
Hello Amir,

There are many factors that relate to this question but here are a few to consider.

It is all about the numbers and the key question here would be...when did you purchase your home? For example if you had purchased your home between 2000 - 2003 there is a very good chance that adding to your home would make more dollar sense.

Other questions to consider are: 1) Present market value for you neighborhood based on additional add ons? 2) Would you qualify for a new loan or refi to perform the additions? 3) If you sold today what would it cost you to purchase the home you wish to have size wise? 4) And more questions...

You have to remember that if you sell your home to buy another home you are going to have to pay for the use of agents. So for example if your home would sell for $500,000 and you paid a 6% commission to the agents, you are going to loose $30,000 in purchase power. This $30,000 could easily add value to your present home instead in the pockets of a Broker. Yes you heard me correctly. I am an agent who would like to make money but at the same time you are seeking good and solid advice from a professional within the real estate industry.

As always you want to do your home work on this for there is a lot to think about on top of the money saved or obtained for the additions. You have to remember the time and level of stress which comes along with adding rooms or performing any type of rehab work on your home. But I will share this with you from experience....It is wonderful to see a dream you had materialize in front of you when you see the additions or improvements within your home.
0 votes
Terry Wightm…, Agent, Aliquippa, PA
Mon Jun 11, 2012
That is an excellent question. If you sell your current home, you will be able to get a new FHA loan again if you wish. There are no restrictions on how many times you can get an FHA loan. Regarding your home, if it is a home you really like, and located where you want to live, it may be a good idea to just do an addition. Financing is available for qualified borrowers. The thing you have to be careful about is to make sure that you are not over building for the neighborhood. If the cost of an addition would make the home overpriced for it's location, then moving may be a better option. Every individual families circumstances are different, so I would have to look at the home and what you plan to do to it to help you analyze all of your options. Feel free to contact me for a no obligtion analysis.
Laurie Wightman
All California Brokerage
0 votes
Jeremy Lehman, Agent, Garden Grove, CA
Mon Jun 11, 2012
Do you like where you live? To me, that's the real question. People usually build on to their home if they love the area and don't want to leave. Also, do you love your home? I've seen many people move from one side of their neighborhood to another because they liked that home more than the one they lived in but didn't want to leave the area.

If you have equity, you may be able to get a loan to build, but it's not 2005, so the banks will be very conservative about the amount. Also, if you have enough money to put down 10% or more on your next home, you'll can probably get a better deal than FHA and with lower closing costs too.
0 votes
Glen Fenrich, , Fullerton, CA
Mon Jun 11, 2012
Depending on the income and equity you have, you may be able to get a construction loan. Mr. Patel is absolutely correct in that it may still be cheaper overall to move than to construct. Another intangible cost of construction is time and inconvenience. A major addition can be messy, stressful and lengthy. Just something else to factor in as you ponder your options.

Like all other agents, I'm available discuss this further if you would like.
Web Reference:  http://www.realtorglen.net
0 votes
Mahesh Patel, Agent, Anaheim Hills, CA
Mon Jun 11, 2012
Thanks for your inquiry.

If you build a home, it might cost you more than just getting a bigger home.
Interest rated for puchase are so low... so You will really have to calculate constuction costs vs buying and selling cost.

I will be happy to assist you with this 'research'...

0 votes
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