i wouldn’t buy the house right from the beginning because after i fix
up the house, i can apply for a loan based on the original loan amount.
say its
100,000 loan balance
needs 10k to be worth 150,000
now when i go to the bank… i apply for a 100,000 or a little more… on
a house thats worth 150,000+ MY concern is that i want to get a
home improvement loan for the 10K, i have the deed, but it has a 1st
mortgage loan in someone elses name.
if took a deed Sub2
and the seller agreed to hold a mortgage, after i fixed up the property and get
new financing…
but i wanted to fix up the property using a home improvement loan… would the
lender stay away from it, because the loan is not mine? after the fix up i would
get conventional financing and cash the original loan out… but i want to know if
i will be able to get a home improvement loan while i take title sub2
Posted by DaveD (WI) on March 29, 2006 at 08:00:46:
What do you want to do with the property. Fix it, I get it. But then what? Keep or sell? See, you are talking about 2 or 3 different financing plays in your question.
Equity is always the key. If you are talking thin to no equity sub-2 that needs work on top of it… you are probably looking at the wrong house. Thin equity deals may make sense when the house is gorgeous… but you shouldn’t try to jam-fit a bad deal just because someone wants to sell it to you.
you cant borrow money on someone elses home.I would also record the contract you have that says he will sell it to you at whenever time and thast YOU have a first right of refusal , because he can go in after the house is repaired and sell it out from under you if he chooses. Why not buy the house and theyn it will belong to you to get all the loans you want on it?