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Considering demolition and rebuild. Would I need to refinance my conventional loan?

Current loan is about $300,000.  Home value is around $700,000 with lot roughly $500,000 of the total.  Would I need a construction to permanent (CTP) loan?
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September 17 2011 - Clarendon-Courthouse
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You may have land worth more than the present loan, however, convincing your lender of that will certainly be problematic. Construction to perm is very hard to find, 203 K might be your salvation, however, it must be your primary home to use the 203 K program. Remember, Fannie, Freddie, and FHA just LOWERED loan limits in keeping with the idea that the housing market needs to recover in order for us to exit this economic crisis. Obviously, making it harder to get a loan along with lowering the amounts loans will be is an EXCELLENT way to spur housing purchases, don't you think?
Jim, American Bank

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September 17 2011

I just saw your question.  I have been lending in North Arlington for some time.  There are two options for you 1) a Construction to Permanent Loan that was mentioned before.   This offers some flexibility but some risk and or expense to locking in an interest rate for an extended period of time (beyond 90 days)  or waiting and hoping rates are as low as they are today as they will be towards the end of your project.

2) Using a Conventional renovation loan.   You could lock in a rate now with this option without concern of rates rising.   A conventional renovation loan does not have to have mortgage insurance where as the FHA 203(k) loan always carries mortgage insurance for at least 5 years.  Please contact me if you would like more details.

 [edited by Zillow moderator to remove contact information. Please refer to Good Neighbor Policy]

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October 04 2011
Sorry, I'm a little late with this answer...

We have ALL the renovation products. FHA 203k is NOT the answer, if there was no prior home. You would need a home that at some point DID exist. You can use even PART of the old foundation and that loan would work, otherwise, you do need a CP.

I have all these loans and even some other construction loans that we only offer, on our portfolio.

Please feel free to reach out and I would be delighted to assist.

You can find my info in my profile. :)

Thanks!
b
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October 01 2011
You need to find a lender that offers CP.  I do but don't lend in VA.  Point being....."Construction to Perm is very hard to find"  might be true for a broker or correspondent lender...but not so for smaller direct lenders.
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September 18 2011
 
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Considering demolition and rebuild. Would I need to refinance my conventional loan?
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