Posted on: 02nd Aug, 2009 05:19 am
In Rehabilation Mortgage, what is the process lender follows to find out max mortgage amount?
i hope you are asking about rehabilitation home mortgage loans
in rehabilitation home mortgage, maximum loan amount is the lower of :
- the as-is value, if appraised, or the contract sales price, plus the cost of repairs and improvements; or
- the existing debt on a refinance plus the repair costs.
in rehabilitation home mortgage, maximum loan amount is the lower of :
- the as-is value, if appraised, or the contract sales price, plus the cost of repairs and improvements; or
- the existing debt on a refinance plus the repair costs.
and, of course, there's a 3.5% down payment requirement. this down payment is based not on the purchase price, but on the overall amount of the rehab loan.
