Posted on: 14th Feb, 2010 04:14 pm
We have a house that we can buy on a short sale for $110,000. The house needs $60,000 worth of work. Even after this work it is a great deal for my wife and I.
We also own a home right now and have an FHA mortgage for it.
So we went out and got pre-approved on a FHA 203k loan (not the streamlined one) for this new house we want. The problem we ran into is that someone can't have two FHA mortgages at one time unless they have 25% equity in their current home (we have 5%), AND the new house must be an upgrade (which it is).
In today's market, is there an alternative? We have asked around about conventional rehab loans but keep getting told they don't exist anymore.
Thanks so much for any help!
We also own a home right now and have an FHA mortgage for it.
So we went out and got pre-approved on a FHA 203k loan (not the streamlined one) for this new house we want. The problem we ran into is that someone can't have two FHA mortgages at one time unless they have 25% equity in their current home (we have 5%), AND the new house must be an upgrade (which it is).
In today's market, is there an alternative? We have asked around about conventional rehab loans but keep getting told they don't exist anymore.
Thanks so much for any help!
Hi benmaxny,
I would suggest you to speak to the lenders in this regard and check out if they can help you with any options. You may check out the given page in order to find a discussion on a similar topic:
http://www.mortgagefit.com/pennsylvania/203k-alternative.html
Thanks
I would suggest you to speak to the lenders in this regard and check out if they can help you with any options. You may check out the given page in order to find a discussion on a similar topic:
http://www.mortgagefit.com/pennsylvania/203k-alternative.html
Thanks
ben, i'm afraid you'll find no alternatives here. are you planning to retain the existing home? it appears that way. but the fha guidelines are not flexible - you cannot have two.
you might find, i suppose, a lender who would allow for a construction-type of loan (or home improvement) in tandem with the purchase of this house, though that "might" is a very weak description. i will be surprised to learn that you find someone to help you, but i hope you do.
you might find, i suppose, a lender who would allow for a construction-type of loan (or home improvement) in tandem with the purchase of this house, though that "might" is a very weak description. i will be surprised to learn that you find someone to help you, but i hope you do.
