Posted on: 24th Sep, 2010 12:46 pm
I am putting a bid in on a second home. Roof, septic tank and a retaining wall will probably need to be seriously repaired. We would like to do the repairs ourselves, but our bank will not give a loan if repairs are needed.
We would prefer to put on a good roof and not the cheapest one the seller would do. Our credit scores are 800 +, and we have pre-approval from our bank. We understand that there is a FHA loan available that would put money in escrow to pay for the repairs. Since this is a second home, we don't qualify. Are there any other creative mortgages out there that would allow us to do this.
As a side, we have a rental home that is fully paid for and a minimal mortgage on our primary resident. We even thought about a HELOC on the rental, but were told we couldn't do that since it has no mortgage.
We could pay cash for the house from a HELOC on our primary residence, but that would limit the amount of free cash we have for other remodeling of the home.
Any suggestions?
Beverly :?:
We would prefer to put on a good roof and not the cheapest one the seller would do. Our credit scores are 800 +, and we have pre-approval from our bank. We understand that there is a FHA loan available that would put money in escrow to pay for the repairs. Since this is a second home, we don't qualify. Are there any other creative mortgages out there that would allow us to do this.
As a side, we have a rental home that is fully paid for and a minimal mortgage on our primary resident. We even thought about a HELOC on the rental, but were told we couldn't do that since it has no mortgage.
We could pay cash for the house from a HELOC on our primary residence, but that would limit the amount of free cash we have for other remodeling of the home.
Any suggestions?
Beverly :?:
Hi Bas!
Welcome to forums!
As you already have a mortgage on one of your properties, the lenders are not ready to give you a loan though you've a good credit score. You've mentioned that you've a minimal mortgage on your primary property. In that case, it will be better if you could pay down that mortgage and then apply for loans. It will be easier for you to qualify for a loan on a second home.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you already have a mortgage on one of your properties, the lenders are not ready to give you a loan though you've a good credit score. You've mentioned that you've a minimal mortgage on your primary property. In that case, it will be better if you could pay down that mortgage and then apply for loans. It will be easier for you to qualify for a loan on a second home.
Feel free to ask if you've further queries.
Sussane