Posted on: 04th Dec, 2009 02:49 pm
My husband will be inheriting his mother's house (which is currently in a trust in his name) and we know she still owes approximately $60,000. The house needs repairs before we would think about moving in so we would like to get a loan and addthis to the mortgage. Neither one of us has ever owned a home, this would be a first time for both of us. Would this be called re-financing?
this is a classic situation for an fha 203k loan. yes, indeed, it could be treated as a refinance, and you'd be able to borrow the funds to do the repair work.
in preparation, there'd have to be an estimate of the work that needs to be done, and the related costs. of course, that amount would be added to the $60k, as well as some admininstrative costs and a cushion to ensure that the work would be completed as specified.
what you'd want to do is to discuss this overall scenario with your lender. not everyone makes 203k loans, so you may end up shopping around a little bit for a lender. one of us lenders on this site may be able to assist you.
after closing, the transaction is treated as a construction loan, with inspections needed to ensure that work has been completed, etc. there's more detail to it, but far too much to say it all at once.
in preparation, there'd have to be an estimate of the work that needs to be done, and the related costs. of course, that amount would be added to the $60k, as well as some admininstrative costs and a cushion to ensure that the work would be completed as specified.
what you'd want to do is to discuss this overall scenario with your lender. not everyone makes 203k loans, so you may end up shopping around a little bit for a lender. one of us lenders on this site may be able to assist you.
after closing, the transaction is treated as a construction loan, with inspections needed to ensure that work has been completed, etc. there's more detail to it, but far too much to say it all at once.
If your 62 or older you can use a reverse mortgage to do repairs to your home. If not, I would also suggest the 203k loan.
seems like the 203K is the way.