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Am I able to take out a loan for more than the price of the house?

 Would I be able to take out a loan for $50,000 if the selling price of the house is $40,000?
  • March 07 2011 - US
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Answers (9)

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  • April 06
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As others have posted, you can look into a 203 loan for renovations.
Alternatively, if the property appraises for more than the LTV of your current situation you may be able to get a HELOC for the property.
  • April 06
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  • April 06
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Conventional Renovation allows up to 95% of AFTER improved value, owner occupied and up to 80% investor purchase.  FHA 203k Streamline and Full allow up to 110% if the repairs are considered health and safety.  (Water, Septic, Sewer etc)

  • April 14 2012
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Depends on what you plan to do with the money.  If you plan to rehab the home then yes.  A 203k lets you take 110% of finished value.  Meaning if you purchase the home for 40,000 but plan to make 10,000 in improvements.  If the home will be worth 50,000 after those improvements then you could actually get a loan for $51,000.  Or lets say the improvements needed on the home will bring the value to 90,000.  Then you could acutally borrow up to 99,000 on the home.

One thing to note, no money will be put directly into your pocket.  All the money, have to be put directly into the improvements or go back to the bank to reduce the loan amount. 
  • March 09 2011
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You could do an FHA 203K rehab loan.
  • March 07 2011
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You will probably only be able to get a renovation or rehab load.
  • March 07 2011
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Only on rehab/renovation loans.   
  • March 07 2011
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Not likely. That is the whole purpose of appraisals, so that the bank doesn't get stuck with a mortgage loan of greater value then they can recover in case of default and they have to foreclose and sell.

There are some purchase and rehab loans that might extend monies for rehab. Talk to a lender to discuss.
  • March 07 2011
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