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House on fire! Can anyone help with Rehab loans?

Posted on: 11th Jul, 2007 03:26 am
Hi everyone, this is Andrew smith from First of all, let me say, I am not that aware of the mortgage loans that the industry talks about, so I'm sorry if I am wrong with the terminologies. Well, if I should say this, my situation is worse, my house has been on fire and needs restoration. I've talked to several lender and all of them saying that the only loan option that I can opt for in order to add a 2nd story is a rehab loan. Apart from the construction, the insurance company will restore the house to the original condition. I'm getting options like 5 year ARM or a 3 year ARM with yearly interest loan after that. The fees are ranging in between $2500 to 3000 but this seems to be too high for me considering that my Equifax score is in the 650 range. After the construction, I can refinance into 30 year fixed rate loan with a few of 1300. What I want to know is, can I refinance the rehab loan prior to the 2nd story construction is finished. I'm worried that the construction ill take a couple of years and I'm thinking as to whether I shall be able to refinance with the 30 year fixed and say if I don't get good rates. Also, do you think there are any other alternatives to this rehab loan for building the 2nd story. I don't have much equity as the house is burnt, so I know I won't be able to go for loans such as home equity loans or the like. Any advice will be appreciated. Also, would like to know if anyone here is willing to offer us the financing in this situation?
Hey Scott,

That's absolutely cool; it doesn't matter if you're late. You gave some time to the community and shared your knowldege - I think that's going to help Roger a lot.

Thanks,

Brian
Posted on: 05th Aug, 2007 07:50 am
Hi Scott,

It is really good that you have given so many informations on the 203k program. It is surely going to help Roger.
Posted on: 06th Aug, 2007 01:36 am
Hi Andrew,

I have read through the previous posts and I feel that in your situation, going either for a construction to permanent loan will be a good option. Even better would be an FHA 203K loan. Now, if you are interested, you can look out for a lender within our community itself.

Our community has a group of lenders offering different types of loan programs to people of varied income and credit status. So, you can send us your request for mortgage quotes. As soon as we receive your request, we shall pass it on to our community lenders and they will try their best to process your request. If the lenders' profile matches with your loan requirements, then they shall contact you soon.

Good luck :)
Posted on: 08th Aug, 2007 04:54 am
Hi guys,

I am roger25 who needed your advice on a rehab loan..so here's my story so far...i did talk with some lenders offering construction loans but could not qualify for the loan..i requested for quotes here and some lender called me up. So, we're meeting tomorrow ..and i hope something positive turns out. :) I'll update you guys on what he's saying about the offers i can probably get
Posted on: 14th Aug, 2007 04:26 am
Hi Roger,

Welcome back to forum.

Hope this time you will get a positive response from the lender. Please feel free to ask and update us on what happens next.

All the best!
Posted on: 14th Aug, 2007 10:07 pm
Hi guys,

I did meet the lender and got pre-qualified. he's offering a 203K loan a fixed one as i'd like to avoid an ARM as of now. Is that ok? and if i am getting rates, say 6.5%. is that ok?
Posted on: 18th Aug, 2007 04:34 am
Hi Rogersmith,

It seems nice that you got pre-qualified for a 203Kfixed loan. Now as you will know the fixed monthly payments on the fixed rate loan, you will be able to plan a fixed budget and proceed accordingly.

And the 6.5% rate that you have been qualified for seems to be quite ok if compared with the current market. For your information, the present interest rate for 30 year FRM is 6.62% and for a 15 year FRM is 6.30%.
Posted on: 20th Aug, 2007 02:01 am
But larry are these the national rates? because i am in texas. So what are the rates there?
Posted on: 20th Aug, 2007 11:11 am
In Texas the 30 yr frm is presently going at 6.23%
Posted on: 20th Aug, 2007 07:04 pm
Hi Rogersmith,

The rates that I've mentioned are the rates that are presently going throughout U.S. So, you can be sure of it.
Posted on: 21st Aug, 2007 01:13 am
Hey everyone now it is June 2009... and the FHA maximum mortgage amounts have increased dramatically. In high cost areas the maximum loan limits through the end of 2009 will be $729,750 for a SFR and over $1.4MM on a fourplex, very high cost areas is 1.5 x that amount. Not all areas are that high and it does depend on the county or parrish your property is in. Go to

https://entp.hud.gov/idapp/html/hicostlook.cfm

and input your county info to see what they are in your area. M
Posted on: 31st May, 2009 10:19 am
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