First time home Mortgage loan?
Home Mortgage
Aaron D asked:
Can I get my first home mortgage loan for the appraised value of the home if I am purchasing it for less…. i.e. If I am purchasing the home for 96,000 and it appraises for 107,000. Can i get the loan for the appraised amount at the start or do I have to get a home equity loan later?
Carolyn
Can I get my first home mortgage loan for the appraised value of the home if I am purchasing it for less…. i.e. If I am purchasing the home for 96,000 and it appraises for 107,000. Can i get the loan for the appraised amount at the start or do I have to get a home equity loan later?
Carolyn
July 24th, 2009 at 8:31 am
Beverly
The lower of the appraised value or sale price is what is used.
July 25th, 2009 at 8:06 pm
Rick
what do you plan to do with the extra equity?
If you were thinking of just having the money, then the answer is no. You will have to wait to get that extra “ghost money”. Most loan underwriters will use the lesser of the appraised value /purchase price. IN your example, you will be loaned no more than 96,000. However, on the good side, you bought a home that has equity already.
However
If you are borrowing the money to repair the home, then you will need a 203k loan. Which you can borrow up to 125% of the purchase price.
July 27th, 2009 at 2:25 am
Natalie
Chances are with the current banking troubles, you should consider yourself lucky if you can get a mortgage for the home.
The bank will have their own appraisal done and will loan up to 80% of the appraised value.
Get the basic loan, and secure the home, then do some fluff up work that you can afford, paint, landscape, etc. then go apply for a home equity loan, they will do a new appraisal and then loan based on that new appraisal.
Here is a website with some great information on home loans and home equity loans, It helped me out.
Hope this helps
July 27th, 2009 at 6:35 pm
Floyd
I can help with your mortgage!
I am a mortgage broker. If I can be of service, please let me know!
Martin Smith
Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX