Question : Can we get part of our home loan as cash to do repairs on the house?
A job transfer has relocated us to Las Vegas, and we've gotten approved for 360K to buy a house. We offered 285K on a home and would like to get an additional 25K from the home loan in order to repair the house (carpet/flooring, paint, and other repairs)Will lenders typically do that? What other avenues are there to get cash to repair the home?
- asked by bandana
All Answers:
Answer #1
as long as i get some.
- answered by razor face
Answer #2
yes
- answered by Tunisiano Selim
Answer #3
Being apporved for 360K doesn't mean they'll giveyou 360K.Generally - you'll get the amount youneed for the home you're going to buy. Most bankswill not give you more money than a home isworth.In otherwords - you find a house worth 285K,they'll give you 285K, not 310K. If you default,they'll be out 310K, and they'll be left holding aproperty that is worth less than the loan.
- answered by Cat
Answer #4
Typically not on the original loan, although ifthe appraisal is much higher than your purchaseprice, you might find a lender who will doit.After you build up some equity, it's common tobe able to refinance and take some money out. Orto get a home equity loan for the repairs.Beingapproved for $360k doesn't mean they'll lend youthat much - the house has to be worth that muchtoo.
- answered by Judy
Answer #5
If you cannot find financing, most largercontractors/construction firms have good financinglike 1 year same as cash or other decent paymentplans
- answered by Your #1 fan
Answer #6
Unlikely. The lender is only going to give a loanfor the appraisal value of the home, not what youcan pre-qualify for. There are FHA 203b loansthat allow some money for repairs, maybe some ofthe lenders that come in here will explain that toyou. If it appraises for more than you paid, youcan get a HELOC, but that will be a higherinterest rate. How about the Home Depot card thatgives you one year same as cash? But thatinterest accumulates, and on day 366 if youhaven't paid it off, they'll slap all thatinterest on your tab, so make sure you pay it off. I don't think you can get $25,000 line of credit,but I have a $10,000 credit line. That will buyalot of home improvement stuff.
- answered by godged
Answer #7
No you cant. Your home loan is only a loan to buythe house; soft money loan. Getting cash isanother type of loan hard money loan: home equityloan, or home equity line of credit. A hard moneyand soft money loan are two very different loans.Qualifications, fees and interests are higher withhard money loans. You cant have a 2 for 1. You canask the seller to credit money for repairs, butthat's out of their profits.
- answered by Skywalking
Answer #8
As others have told you, the loan will be based onthe appraised value. It is very likely that theappraised value will not be much more than theloan, even if you find a huge bargain.
- answered by bdancer222
Answer #9
Most lender do not do cash back purchase loans.Youcould investigate the possibility of obtaining anFHA203K purchase & rehab loan. That would be aboutyour only solution, other than a equity or remodelloan after youpurchase.
http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfmThere is also offer a streamlined 203K(limited repairs)
http://www.hud.gov/offices/hsg/sfh/203k/203kmenu.cfm
- answered by Dawni Do Right
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