Equity Loan Information
Home Purchase and Home Equity Loan?
Hello, I'm about to buy my first home and in the process of making an offer. If i'm doing a 100% financing on a purchase no greater then $100,000 will it be hard for me to also get a home equity loan no greater then $20,000 so i can do the repairs that are needed for this home. Thanks! Update Credit score is good at 700 and I've been pre-app. for 100% financing. Trying to get a home for fewer than 90,000 in a neighborhood where homes are worth around 140,000. Hope that info helps a bit. Also, can I roll some if not all of the closing cost into the loan amount because i'm limited to what I have to give out of pocket. Thanks for everyones advice!
Public Comments
- So the home purchase price is $100K. Do you know how much the home would appraise for? In other words how much is it actually worth. For example, if it is worth $130K then you automatically have 30K equity in the home. If the price is the same as the home's value and you have no equity - then you are talking about a no equity refinance loan to get your HELOC or home equity loan. These usually carry higher interest rates because they are riskier. But are doable especially if you have decent credit. We can give you refinance quotes when you are ready.
- Right now with all the mortgage defaults it may be difficult or impossible to get 100% financing. If you are lucky and do get it, it is unlikely that you will be able to get a home equity loan as you usually can only get a home equity loan if the value of the house exceeds the existing mortgage. Suggest you speak to a banker or mortgage broker before you proceed.
- I think you can get what you want and keep it at no out of pocket expense. Sounds like you need to get a good loan officer working for you. I recommend Smart Choice Mortgage. They do business in most states and are your best opportunity for someone to say yes. Check out the free evaluation form at the source website and a Smart Choice loan officer will contact you within 24 hours. Good luck.
