Forgotten Your Password?

Need to Register?

Question Icon

Can I borrowing more than list price on an under-priced home so I can use for repairs that are needed on the home?

by billchar565 from Santa Ana, California. 16 days ago Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,588 contributions

Yes, but no.. There are several types of "Rehab" loans..(FHA and Conventional) that allow you to add funds for repair. But this all has to be done through the loan.. it's a little more expensive since you must use licensed contractors and have to have the bids in hand when you apply. Also, you are not allowed to do the work yourself. If you go FHA, then you are required to hire an FHA consultant which is an added cost to you. Both of these products require 2 appraisals.. one showing the "As is" value.. and the other showing the "Improved value". So, you are not allowed to borrower more than the home is worth, but so long as you are within the allowable loan to value based on the "Improved value".. then you can get financing. Ideally, you purchase the home as is, and then use your own funds for repairs/updates.. even if you have to use credit cards, your better off, but none the less, this loan product is available. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

16 days ago
1
0
Dan Paladin (dpaladin)
#1 ranked lender in California - 556 contributions

Short answer, yes....based on the program..for complete details feel free to contact me a 562.254.5616

16 days ago
0
0
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,875 contributions

100% agree with William's response, with the following addition: Rehab loans are a great loan for the right person on the right house for the right reason. They are wrong for many properties... When a Real Estate Agent just throws out "Get a rehab loan", they really don't know anything about it, and are just trying to make a sale. I do both the FHA 203k rehab loan, and the Fannie Mae HomeStyle loan for properties in MN, WI, and SD. Visit me at JoeMetzler.com. NMLS274132

10 days ago
0
0
Subscribe to our news feed.