Posted on: 14th Jan, 2011 10:39 am
I am in a catch 22. We inherited a home and got a HELOC to do some renovations. We ran out of money in our HELOC and our renovations are not complete. Every lender I've talked to says that our credit and income is not what's keeping us from getting a loan. It's the fact that the home isn't complete. But we can't complete it without a loan. Is there any way around this?
Hi cher_bros,
With a bad credit and low income, you won't be able to get any kind of loan. You should improve your score and then apply for a loan. Check out the given page in order to know some tips to improve your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Thanks
With a bad credit and low income, you won't be able to get any kind of loan. You should improve your score and then apply for a loan. Check out the given page in order to know some tips to improve your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Thanks
You mis-read what I wrote or I wrote it in a confusing way. We have good credit and our income is good.
The only way that i know of getting a loan for the home, its going to be tricky and you will need a really good lender to know what they are doing. i use to work for the bank in canada and there is a certain loan call a builders credit or construction loan. it will have to go through a lawyer and you will need to get a general contractor.
another options is to turn your heloc into a mortgage and then go to onther bank and take out a heloc on the house. Banks will alwyas compete for your busniess. you dont want to take out that much credit because in everyones contract doesn`t matter the country the bank or lender can recall the funds of any loan if they deem necessary.
another options is to turn your heloc into a mortgage and then go to onther bank and take out a heloc on the house. Banks will alwyas compete for your busniess. you dont want to take out that much credit because in everyones contract doesn`t matter the country the bank or lender can recall the funds of any loan if they deem necessary.
you didn't say what all you have left to do in your remodel, but if it isn't structural and you have very little equity, one option would be a fha 203k rehab loan.
for federally insured loans (standard fha & va), the house has strict guidelines about completion & habitability in order to qualify for their loan programs. the appraiser is the one that determines this, and i've seen fha deals get stuck by things as minor as construction debris still in the yard.
conventional loans (ie 20%+ equity) don't have across the board guidelines, it is up to the specific lender. you will have to qualify on the "as-is" appraisal value.
if you have the 20%+ equity, keep talking to the banks and mortgage brokers, you should eventually find someone to refinance you.
--steve
titan mortgage alaska
for federally insured loans (standard fha & va), the house has strict guidelines about completion & habitability in order to qualify for their loan programs. the appraiser is the one that determines this, and i've seen fha deals get stuck by things as minor as construction debris still in the yard.
conventional loans (ie 20%+ equity) don't have across the board guidelines, it is up to the specific lender. you will have to qualify on the "as-is" appraisal value.
if you have the 20%+ equity, keep talking to the banks and mortgage brokers, you should eventually find someone to refinance you.
--steve
titan mortgage alaska