Banking/loan question

[1100011CS]

Ok, so it would be classified as a bridge loan and renovation loan. Shouldn’t be awful but best to deal with a direct loan officer instead of an originator.

Might as well be speaking Greek.

 

[ArgentCy]

Yes, the as-is value of the house is close to nothing right now. We're almost starting from scratch.

Hope it's not rougher than the house I just went through. Yikes. I don't think you could pay me to take on that project.

 

[trevn]

Might as well be speaking Greek.

He's saying go to someone who would be making the loan decision instead of just filling out paperwork and talking about loan products. Your situation isn't incredibly unique, but does require a bit of outside the box thinking. Most big banks take a cookie cutter approach to lending and if your situation doesn't fit that mold exactly, they won't do the loan or it will be difficult to get it approved.

 

[ArgentCy]

To be clear, we will be living in it when complete. The thought was that we could finance the renovations with a construction loan or HELOC (equity in our current home or the speculative credit in the renovated one) then roll either one into a 15 year mortgage when complete and our current house sells (so we'd have money for down and lower the mortgage).

So you are wanting to move into this new home but it's going to take major work, right? Ok, is your current home already on the market? If not a lot of people will refinance the current home in order to upgrade the new one. Construction loans get risky for banks because things can go wrong pretty quickly and often, at least in our area, the value is less than the amount of money it takes to renovate unless you do a lot of the work.

 

[1100011CS]

Thanks for all the input. I think we've found a couple banks able and willing to do a construction loan. We'll see how it goes.