Posted on: 01st Feb, 2007 11:58 am
Hello. Recently trying to get pre-approval for a mortgage(Finger Lakes of New York). Was told because the house isn't finished being built, we could not get approved for that house. Any suggestions?
Hi Kbleier,
You can look for construction-to-permanent financing as an option.
Welsman
You can look for construction-to-permanent financing as an option.
Welsman
Yes in your situation construction to permanent can be a choice you can utilize. It is program which combines financing for the cost of your house construction in the form of a short term loan which converts into a permanent mortgage after construction completes.
With such loans there is only one loan application & closing. During the construction period disbursements will be made to you to pay for construction costs. And during this time each month you will have to pay the accrued interest over the outstanding balance amount. After construction completes the loan will become a permanent mortgage of the type which you select at the time of application.
With such loans there is only one loan application & closing. During the construction period disbursements will be made to you to pay for construction costs. And during this time each month you will have to pay the accrued interest over the outstanding balance amount. After construction completes the loan will become a permanent mortgage of the type which you select at the time of application.
Hi Katie,
Welcome to the forums.
Are you building the house or is it that you'll be buying it from someone? Well, if you buy it from some other person, then you need not go for construction to permanent financing. I think you need to wait before the construction is complete.
You loan wasn't pre-approved because prior to pre-approval, the lender has to determine the appraised home value. He needs to be sure that he can recoup the money if you default on the payments.
The lender offers a loan amount worth a certain percentage of the appraised home value. So, in order to find out the maximum value that he can offer you, he needs to know the appraised value and for that the construction needs to be completed.
Thanks,
James.
Welcome to the forums.
Are you building the house or is it that you'll be buying it from someone? Well, if you buy it from some other person, then you need not go for construction to permanent financing. I think you need to wait before the construction is complete.
You loan wasn't pre-approved because prior to pre-approval, the lender has to determine the appraised home value. He needs to be sure that he can recoup the money if you default on the payments.
The lender offers a loan amount worth a certain percentage of the appraised home value. So, in order to find out the maximum value that he can offer you, he needs to know the appraised value and for that the construction needs to be completed.
Thanks,
James.
I have a house I want to buy and its 90% complete, I am getting it for $180,000 It value setting as it is 90% complete is $225,000, How do I finance that house.
Hi bigbsc,
As you want to buy a house on short sale that is unfinished. I am not sure whether lenders would be willing to finance the house. However, you may get a loan on the value of the finished portion of the house. I'm not sure though. Why don't you consult with the community lenders at no-obligation free consultation ? They might be able to help you find a loan program that would suit your requirements.
As you want to buy a house on short sale that is unfinished. I am not sure whether lenders would be willing to finance the house. However, you may get a loan on the value of the finished portion of the house. I'm not sure though. Why don't you consult with the community lenders at no-obligation free consultation ? They might be able to help you find a loan program that would suit your requirements.
bigbsc, you may be able to purchase with an fha 203k loan, which would allow you funds for the renovation (completion) of the home.
the traditional construction loan that we had available for so many years is pretty much a dinosaur now, but depending on the specifics of your situation, i think it's worthwhile to seek out a 203k.
the traditional construction loan that we had available for so many years is pretty much a dinosaur now, but depending on the specifics of your situation, i think it's worthwhile to seek out a 203k.
There are credit societies who lend you the mortgage at a very low rate.
Get it from them and later when you are eligible for the bank get it from the bank and close this one.
Get it from them and later when you are eligible for the bank get it from the bank and close this one.
are you the same guest that gave that other nonsensical answer about a divorce situation?
where do you get your thoughts?
where do you get your thoughts?
Well, I can tell from his picture that he must have graduated from SOMEWHERE..
