Posted on: 08th Sep, 2009 08:10 am
We are looking at two condos in the same community, one priced at $220000 while its assessed price is $190000. The other house is priced at $250000 while its assessed price is $240000. We are planning to bear the entire closing cost but put in a zero down payment.
Which of these two houses will let us get the maximum loan?
Which of these two houses will let us get the maximum loan?
the maximum loan is based on how much you have for down payment. if you purchase at $190000, your maximum loan will be $190000 less your down payment (3.5% for fha loans); if you purchase for $250000, your maximum loan will be $250000 less your down payment (3.5% for fha loans).
i don't believe that's what you are asking; but what you are asking is for something other than what you can obtain, i think.
i don't believe that's what you are asking; but what you are asking is for something other than what you can obtain, i think.
George, appreciate your quick reply.
I do understand that the loan that I get is the total minus the downpayment. The house is priced at 250000 but if the assessed price is only 240000, can I still apply a loan for 250000 ? Does not the assessment price play a role in deciding the loan amount?
I do understand that the loan that I get is the total minus the downpayment. The house is priced at 250000 but if the assessed price is only 240000, can I still apply a loan for 250000 ? Does not the assessment price play a role in deciding the loan amount?
if you are speaking of an appraised value - that has an impact on a loan amount. if you are truly speaking of an assessment (the value placed on property by the taxing authority), that only affects your taxes.
the maximum loan will always be based on the lesser of purchase price or appraised value (not assessment).
the maximum loan will always be based on the lesser of purchase price or appraised value (not assessment).
Alright, that clarifies my question. Many Thanks!