Posted on: 02nd Jan, 2010 08:54 am
Hello. My (new) spouse has a piece of property in South Carolina with no mortgage. The property is in need of some renovations, but we are not certain if we can receive enough from a HEL to do all of the work. The tax value of the property is approximately $xK, but we may need between $2xK and $3xK for the renovations.
I am seeking advice on how to get the amount of money needed for the renovations. I am also curious if it is legal and/or logical for my wife to sell me the property (so I have a mortgage at a lower interest rate than an HEL) and then I turn around and put her back on the deed?
Stephen
I am seeking advice on how to get the amount of money needed for the renovations. I am also curious if it is legal and/or logical for my wife to sell me the property (so I have a mortgage at a lower interest rate than an HEL) and then I turn around and put her back on the deed?
Stephen
a couple of things..
1. the tax value is not the actual market value. lenders use market value to determine the property value.
2. your wife can refinance the home into a conventional mortgage without getting a home equity line of credit or a home equity loan.
1. the tax value is not the actual market value. lenders use market value to determine the property value.
2. your wife can refinance the home into a conventional mortgage without getting a home equity line of credit or a home equity loan.
pl specify market value of property. but for sure it is impossible to finance double the amount
what you may be able to do is worth with a lender who offers a 203k loan program. this depends on the type of property, and it must be owner-occupied. you can get as much as 110% of the "after-value" of the home. by that, i mean what the home will be worth once all work is complete.
