Posted on: 10th Aug, 2009 04:33 pm
I built a house in Texas on a lot we owned and still paying for it to a relative and the title of the lot is in our name. We build a house with money from credit cards because the banks did not wanted to lend us money to build a house with the material we were using since there is no other contractor in the area familiar with this type of construction. Now we are 85% finish and are looking for a loan to pay off the credit cards but the bank is telling us that the loan they we can take is a home equity that does not cover all the loans that we have for the construction since it will cover only 75% of the costof the property. Can we take another type of loan?. There is anything else we can do to get a regular mortgage on this property?
I would try and borrow from friends or relatives. The other thing you can do is attempt to get an "as completed" appraisal at a higher value.
the loan is not to complete the house, we can do that. The loan we need is after the house is completed and then pay off our creditors.
Hi alejohh,
If you hold the title to the lot and the house, and you qualify for a loan, there's no reason why you should not get a loan. Why does the lender want to give you loan only up to 75% of the home value. Have you talked with any other lenders? Can they not finance at least 80% of the home value? I think you need to talk with some other lenders and ceck out if they can raise the loan to value ratio to at least 85% so you can cover the credit card debts. If you go for 75% LTV loan, you can also seek to cover the rest of the 10% by taking a personal loan.
If you hold the title to the lot and the house, and you qualify for a loan, there's no reason why you should not get a loan. Why does the lender want to give you loan only up to 75% of the home value. Have you talked with any other lenders? Can they not finance at least 80% of the home value? I think you need to talk with some other lenders and ceck out if they can raise the loan to value ratio to at least 85% so you can cover the credit card debts. If you go for 75% LTV loan, you can also seek to cover the rest of the 10% by taking a personal loan.