Posted on: 03rd Jan, 2009 02:30 pm
Just purchased a new home (summer 08) for 300K in NW AZ. After purchase made signifigcant improvements (approx. 50K - largely custom in ground pool and landscaping). 1'st mort. balance is 258K. I would like to tap some of the equity, but am having trouble locating lenders willing to lend above 75% LTV. I figure home is worth at least 340K or better. Home without improvements was probably worth 400K or so before market tanked. My spouse and I can document income and have FICO's of 725 +. I am mainly looking to consolidate some credit card debt. Any idea's?
are you in Coconino County? If you are, the FHA mortgage limits there are $362,250. That should allow you to tap into a portion of the available equity. FHA will allow you to cash out up to 95% or mortgage limit max for your county. It looks as if the other counties in the state have a lower limit that would not be enough to help you. I am assuming that this is the home you live in.
It still seems strange that you are unable to get a higher LTV with a conventional loan. IF you continue to run into problems finding the LTV you need with a conventional loan, another option may be a HELOC (home equity line of credit). At this point with good credit and well documented income your local bank may be able to give you a very good rate on an adjustable rate HELOC. I realize that at this point in our lives "adjustable" anything sound aweful, but the reality is that many adjustable rate loans have seen interest rate decreases. This is a result of have a based on prime or something similar. Prime rate is attached to the fed funds rate. This is the interest rate that the FED keeps reducing. Loans that are attached to prime are decreasing with all of these "adjustments". Wish I had one!!!
It still seems strange that you are unable to get a higher LTV with a conventional loan. IF you continue to run into problems finding the LTV you need with a conventional loan, another option may be a HELOC (home equity line of credit). At this point with good credit and well documented income your local bank may be able to give you a very good rate on an adjustable rate HELOC. I realize that at this point in our lives "adjustable" anything sound aweful, but the reality is that many adjustable rate loans have seen interest rate decreases. This is a result of have a based on prime or something similar. Prime rate is attached to the fed funds rate. This is the interest rate that the FED keeps reducing. Loans that are attached to prime are decreasing with all of these "adjustments". Wish I had one!!!