Posted on: 21st Jun, 2009 09:59 pm
i am purchasing a home as my personal residence. i have secured 20%: 14% and 6% closing costs. the balance is going to be provided by another lender. i need $15,000 for repairs. can i get a second mortgage of $15,000 at closing?
I am in the process of closing on a purchase. I need $15,000 for repairs to the home, which will be my personal residence. Can I obtain this sum at closing.
The house is listed at $29,900; it is bank owned. The ARV is $90,000.
The house is listed at $29,900; it is bank owned. The ARV is $90,000.
Hi Winston,
You can get a second mortgage to carry out the repair works on your house. But to get the second mortgage, you will have to apply for it. It will take some time as the lender will verify the details provided by you in your loan appllication and will offer you a loan only if you qualify as per their eligibility requirements. Thus, if you want to get the loan at closing, you need to apply for it much before the day the closing is scheduled to take place.
If the house is listed at $29,900 and the repair will cost you $15,000, I'm quite surprised to know that the after repair value (ARV) of the house will be $90,000! Are you sure about it?
Thanks,
Jerry
You can get a second mortgage to carry out the repair works on your house. But to get the second mortgage, you will have to apply for it. It will take some time as the lender will verify the details provided by you in your loan appllication and will offer you a loan only if you qualify as per their eligibility requirements. Thus, if you want to get the loan at closing, you need to apply for it much before the day the closing is scheduled to take place.
If the house is listed at $29,900 and the repair will cost you $15,000, I'm quite surprised to know that the after repair value (ARV) of the house will be $90,000! Are you sure about it?
Thanks,
Jerry
A second home loan allows you to borrow on the basis of your home equity. The equity is the difference between the current appraised value of your home and the amount you have paid towards the first mortgage.
With most lenders, you can take a second loan such that the total loan-to-value ratio of your first and second loan is equal to 85% of the home's appraised value. However, there are lenders in almost all states excepting Texas and West Virginia who allow you to take out second mortgages equal to 125% of the appraised value.
With most lenders, you can take a second loan such that the total loan-to-value ratio of your first and second loan is equal to 85% of the home's appraised value. However, there are lenders in almost all states excepting Texas and West Virginia who allow you to take out second mortgages equal to 125% of the appraised value.
125% cltv? i'd like to see who those lenders are. i'd also like to find out how long they're planning on staying in business.
sorry, robert, but i'm going to guess your information is a tad bit too old. i can't imagine anyone lending like that - especially on a home that's in need of repair.
winston, you might find someone to lend you the rehab costs on that home, but that's a mighty weak "might," in my opinion.
sorry, robert, but i'm going to guess your information is a tad bit too old. i can't imagine anyone lending like that - especially on a home that's in need of repair.
winston, you might find someone to lend you the rehab costs on that home, but that's a mighty weak "might," in my opinion.
Yes you can get second mortage..
where? do you know specific lenders, hari? are you flush with cash that will allow you to do the loan? 125% is not a realistic number in this economy, in this marketplace, in this country, in this world. where are you coming from with this that you can be so adamant about this availability?