What Kind Of Loan Do You Get To Fix Up A New Home You Just Purchased?
Posted by admin on November 13th, 2009 at 06:52am
I am purchasing a foreclosed home and the previous owners took the kitchen cabinets and counter tops. Now my banker says I can’t get additional money to purchase what i need to fix the kitchen. So my question is where do I get a loan for that? Or what kind of loan?
Under Loans
9 Comments for What Kind Of Loan Do You Get To Fix Up A New Home You Just Purchased?
1. Richard B | November 13th, 2009 at 7:11 am
Julie, if you had qualified for an FHA loan, you could try for an FHA203K loan. All qualifications and requirements are listed on the HUD website. You may run into a problem finding a lender offering these tho. But call HUD if nothing else.
2. Julie L | November 13th, 2009 at 7:16 am
You say you are purchasing a foreclosed home which tells me you haven’t closed on it. One option is to not close on it, depending on what your contract says. It sounds like you are not working directly with the lender that owns the home. Try working with them and they would probably include the price of new cupboards. I bought a whole kitchen at a big box store 50% off as they were changing their line. The owner does not want the house. Also the loan officer should have asked if you would need additional money. FHA 235 is now a fairly easy program, but you can’t refinance what you don’t own. If you really want the property see if the lender you went to has the option of a 235 (probably not). If not check with the lender that owns the property. Also used cupboards are cheaper and you can refinish them. Talk to a 235 lender before doing anything.
3. Alterfem | November 13th, 2009 at 8:06 am
That’s a very good question! When you find the answer let me know… I’ve been wondering the same thing!!! The only things I can think of is refinancing your home. (2nd mortgage) You could ask for a separate bank loan, or simply get a credit card.
4. WTF | November 13th, 2009 at 8:17 am
If it’s a HUD foreclosure, get either a FHA 203(b) with repair escrow (if repairs are less than $5,000), or get a FHA 203(k) if the repairs will be more than $5,000.
If it’s an REO (owned by a bank), then probably go FHA 203(k)
5. teran_re | November 13th, 2009 at 8:22 am
You can get a title one loan for up to 25k, no appraisal needed.
Here is some info about what exactly a Title One loan ishttp://www.bankrate.com/cnn/news/mtg/200…
6. Peilthet | November 13th, 2009 at 8:51 am
I’m not sure where you are, but in Australia you can get a construction loan from most places, like this one: http://www.quickdirect.com.au/Content/Co…
7. purpleca | November 13th, 2009 at 9:32 am
I don’t know how much you are putting towards the purchase price, but a home equity line of credit might do the trick.
8. superque | November 13th, 2009 at 10:04 am
That should be a home improvement loan. Hope this helped you.
9. Kathleen T | November 13th, 2009 at 10:44 am
FHA 203b loan – see if your bank offers this loan. If not, go somewhere else the does FHA loans.
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