Loan $69,9. buying home for less, Can I use the remainder for reno? will it affect my mortgage?

Asked by Ruth Fargas Jackson, Rochester, NY Sat Apr 28, 2012

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7
Spirit Messi…, Agent, Tucson, AZ
Wed May 23, 2012
Not sure what you are asking here, but sounds like a good question(s) for your lender. A lot of the rules have changed in regards to financing, ask your lender, about your specific loan and situation to find out.

Best of luck.

Spirit
0 votes
Garyd. Thomas, , Rochester, NY
Sun Apr 29, 2012
Ms. Fargas Jackson,

It depends, on different things. With certain ones you can do that. It won't affect your Mortgage Adversely. Any Questions or anything I may do please do let me know. I would love your Business!!


Thanks,
Gary D. Thomas Sr.
Hunt Real Estate ERA Columbus
585 785-2018
585 278-2978
Gary.Thomas@huntrealestate.com
0 votes
Maureen Toom…, Agent, Rochester, NY
Sun Apr 29, 2012
Unless you have applied for a loan that allows renovations, your mortgage will be based only on the true Mortgage amount requested, based on your downpayment. FHA 203 K is one of the best if you have applied for FHA. Picking your loan officers knowledge is the best for a good decision. Good luck even if you have to change loan types.......
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sat Apr 28, 2012
Your loan officer can best advise, much will depend on the type of loan....
0 votes
Patricia ("T…, Agent, Canandaigua, NY
Sat Apr 28, 2012
Certain homes might qualify for an FHA 203(k) loan that will help to fund renovations, as long as the house appraises for the total amount borrowed assuming the renovations are done. If your bank preapproval is based on 69,900 and you end up paying less, the bank will take that into consideration when they calculate your 'loan-to-value' ratio, which is the amount of the loan vs. the appraised value of the house. Your mortgage person should be able to inform you about whether you and/or the house could qualify for a rehab loan. Good luck!
0 votes
Raymond E. C…, Agent, Ontario, NY
Sat Apr 28, 2012
Virginia is correct; most mortgages only take care of purchase less money you need done(FHA 3.5% plus taxes and closing costs and conventional 20% plus a USDA would allow taxes to be rolled in if home appraises for that.
0 votes
Gini Denning…, Agent, ROCHESTER, NY
Sat Apr 28, 2012
This depends on what kind of loan you have. You should talk with your mortgage broker for the correct answer, since they know what stipulations there are with your mortgage. Good luck with your new home!
0 votes
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