Posted on: 08th Apr, 2011 05:27 am
Need help and advice. I find myself in an unusual situation in such an economy. My wife and I are totally debt free, employed, and have excellent credit ratings. We own two homes (paid off), one located in a Minneapolis /St. Paul suburb, and the other is a lake property. Home located in the cities is valued at 200K, the lake property at 315K.
We would like to add on to our existing lake property - by building our dream retirement home. We are in the process of obtaining a construction loan for the project. Upon completion, we would like to convert the construction loan into a standard 30 year fixed mortgage. We are being told that conversion to a standard mortgage will be difficult as there has been no comparable sales of similar sized lakehomes for the past year. The range for such appraisals is 20-35 miles from the build location. The amount we are seeking to finance (about 350K) is not even two times our salaries.
What options are there to get around the appraisal "range" and secure a mortgage. Without confidence from some mortgage institution that I can convert a construction loan into a mortgage upon completion - this project is dead.
Can't even help get this economy going even if I wanted to.... Frustrating...
We would like to add on to our existing lake property - by building our dream retirement home. We are in the process of obtaining a construction loan for the project. Upon completion, we would like to convert the construction loan into a standard 30 year fixed mortgage. We are being told that conversion to a standard mortgage will be difficult as there has been no comparable sales of similar sized lakehomes for the past year. The range for such appraisals is 20-35 miles from the build location. The amount we are seeking to finance (about 350K) is not even two times our salaries.
What options are there to get around the appraisal "range" and secure a mortgage. Without confidence from some mortgage institution that I can convert a construction loan into a mortgage upon completion - this project is dead.
Can't even help get this economy going even if I wanted to.... Frustrating...
Welcome Guest,
You may speak to an appraiser as well as your mortgage lender is order to find out about the appraisal range and take their opinion as to whether or not you'll be able to convert the construction loan into a normal conventional loan. Unless proper comps are found, your property won't be appraised properly and you won't be able to convert your loan.
You may speak to an appraiser as well as your mortgage lender is order to find out about the appraisal range and take their opinion as to whether or not you'll be able to convert the construction loan into a normal conventional loan. Unless proper comps are found, your property won't be appraised properly and you won't be able to convert your loan.
>>What options are there to get around the appraisal "range" and secure a mortgage.
You won't be able to take out the construction loan unless there are comparables. An option is to downsize your construction plans, so the completed project is in line with the local comparables.
You won't be able to take out the construction loan unless there are comparables. An option is to downsize your construction plans, so the completed project is in line with the local comparables.
