Posted on: 14th Jun, 2009 03:28 pm
30 year fixed morgage, 20% down, buying a foreclosure. (Florida) Property needs some repairs and closing costs + 20% will tie up most available funds. Is it possible to borrow 10,000 or so more for immediate repairs and have it rolled into your morgage?
your best bet is to put less than 20% down and save those dollars for your repairs. your other option is to get a second mortgage in addition to your first so that you do not have pmi.
It is feasable to roll your closing costs into a morgage as well? or does this fall under the same category?
If it is a purchase, then it does fall under the same category. The other thing you could potentially do is have the seller contribute towards closing costs. Each lender has restrictions as to how much a seller can contribute though.
I feel that your best bet is to apply for the FHA 203(k) loan or Home Path Financing Loan. These two programs allow the borrower to finance the repairs into the mortgage. In your State you should also have a NSP Program. Contact someone who's knowledgeble about these programs to implement it with your financing. What State are you in? I can probably get a contact person for you.
203k was my first instinct as well, scfarber.
whatever repairs and renovations are necessary can be covered with this type of loan. many lenders offer what is called a streamline 203k, which allows for minimal amounts of repairs such as you cited. this would enable to you to make the purchase, begin the work needed, and (upon completion) receive the funds to pay your contractor for that work.
let us know if you need additional information.
whatever repairs and renovations are necessary can be covered with this type of loan. many lenders offer what is called a streamline 203k, which allows for minimal amounts of repairs such as you cited. this would enable to you to make the purchase, begin the work needed, and (upon completion) receive the funds to pay your contractor for that work.
let us know if you need additional information.
