Profile picture for user543710

Renovation Loan

1.5 years ago my husband and I bought a house out of foreclosure and paid 195 for it. We put 10k down and it was appraised at 224k. And, we have put about 16 into it (hardwoods and knocked down walls). We have worked with an architect and contractor and come up with a plan to renovate the entire house and add square feet. The bid is coming in at just shy of 200k. Unfortunately, we don't have the down payment I fear will be needed. FHA only lends 271 in our area of town - not enough for us. We both make really, really good money and both have over a 700 credit score. If we sold this house, with the profit I could go out tomorrow and qualify for a home of 500k or more but I want THIS house, just renovated. Anyone know how I could get a renovation loan for the 200 (could put down 20k)? I believe the house would be worth 405 after the job. I could wait a year and put 100k down but I don't want to wait any longer. I am frustrated because I think our broker when we bough the house screwed us and didn't tell us our renovation options and now that we are ready, we can't get the money via a traditional renovation loan for lack of downpayment even though we could go buy a much more expensive home. Please help!
  • July 07 2012 - Houston
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Answers (2)

Profile picture for Connie Klemme
I'm kinda shocked that no lenders pulled up this question and told you what they could do or how they could help etc.   so giving it another bump and possibly one more in the morning if still no other answers.
  • July 08 2012
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Profile picture for Connie Klemme
talk to private lenders in your area.  or local lenders or mortgage brokers rather than big banks.  that is where i would start.  For lenders, it's all about risk and reward and someone local is better equippred to make decisions outside the checklist they have for making determinations.

hopefully now that I answered this, it will give you a bump back into the current questions and you'll get more answers as well.
  • July 08 2012
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