Unfortunately, Gary, with any financing, the lenders will not allow you to finance if repairs are needed or "in process". When it's a new purchase of an unfinished home, buyers are required to apply for a special rehab loan via FHA called a 203(k) loan. This loan encompasses the cost of the home and the cost of the renovations. I must be honest that I'm not sure if this would be an option for a refinance, but I would check with the lender, especially if you need money to complete the renovations. Best of luck to you!... more
There a several types of "rehab loans". One option is the 203k loan from the FHA which is a loan for the based on the future improved value of the home (purchase price + cost of rehab). If the mortgage insurance on an FHA loan is the deal breaker, you may be able to get one loan for up to 80% and second loan for another 17% (maybe a seller carry back loan) which will prevent the need for MI.
Also, check out Wells Fargo they have a new 203k product for conventional loans, but I have not had any experience with them.... more
Why are you looking to refinance if the rate is so low? Depending on the scenario (cashout, credit, LTV,etc) you should be around the same rate, give or take an .25%. For a more accurate quote, please give me a call or send me an email.
Sr Loan Officer
800-793-9633 ext 185