I recently purchased a house with a FHA loan. The home appraised to a value greater than what I owe the bank. Can I refinance the loan to get a conventional loan using the equity? Is there any time period restrictions for refinancing a FHA loan to Conventional loan? Will the upfront mortgage insurance on the FHA loan be refunded if I refinance? Please advice.
Posts Tagged ‘conventional loan’
Refinancing a FHA loan to Conventional loan?
Tuesday, July 13th, 2010What are the ins and outs of home equity loans?
Thursday, February 25th, 2010Here is what I’m interested in doing … have an eye on a great condo, list prices were around 0k a few years ago, but they are just building and did it right during a down turn in real estate in the area. As a result they dropped the asking price to about 5k. We got a good walk thru with a realitor and she said cash is king here and if they have a cash buyer she knows they’ll likely settle in around 0k just to move the first few units (they build them by the entrance and that was a bad choice!)
So … my credit isn’t going to help with a conventional loan since it can’t be an FHA loan since the project is only about 15% complete and apparently they must do conventional loans for until the project is further along (that’s what the told us, so it was limited to 1 bank) …
Now to the point, I have a relative who may have around that amount in liquid finances. Can they "lend" me the money to purchase the condo and in turn I would then take out an equity loan to repay them? It should appraise at well over 0k and all I would need to to is pay them back to be free and clear. I’m guessing we could even wait a little while to pay them back (build credit up higher?) but I’d like to do that sooner than later.
What are my limitations? Is credit going to bite me on an equity loan if I own outright? Any resources, tips, info would be appreciated!
What's the best way to finance a condo and improvements simultaneously?
Monday, February 15th, 2010Hey everyone,
I’m looking into purchasing a condo, and it’s asking price is ,000. I put in an offer at that price, and I’m hoping that it will get accepted. The only issue is that it’s air conditioning/heating unit isn’t functional, so that will need to be replaced the moment it’s purchased, which should run about ,000 or so.
I’m a first time home buyer, and by the time the deal would close if accepted, I’ll have about ,800 in savings, while I’m asking the seller for 3% toward closing costs, and I’ll likely have to pick up about 0 of the closing costs. I also have a 725 credit score and a debt to income ratio of under 5% before this purchase, being only about 20-25% with it, as I’m trying to keep minimal debt.
The property is not FHA approved, because the condo complex doesn’t fit its criteria, and everyone who has tried a spot approval on other units have been denied. I know that an FHA 203K renovation loan would have been good, but it’s seeming like FHA won’t be an option at all.
I’m being told that right now that a conventional loan is my only option, and that I would have to probably finance the unit through an air conditioning company. I’d prefer not to do that, because of high interest rates and high monthly payments due to short repayment plans.
I know that home renovation conventional loans exist, but I hear that they have specific criteria about the Loan to Value ratios, etc. and that going 90% LTV due to a 10% down payment doesn’t leave room for the improvements. With that being in mind, I’m thinking that it eliminates the ideas of a home equity loan or line of credit.
Does anyone have any ideas for options that I may have? I would prefer not to do a personal loan with a high monthly payment and gouging interest rates of 16% or more. If there isn’t a specific type of mortgage that can do it, then any ideas with no payments no interest for 6+ months would be nice too, as I would have freed up money for settling in at first, and maybe even could just use my tax credit to pay it off entirely.
If you do have ideas for a type of mortgage that may help me out, please name a specific bank/credit union/broker who offers it. I’m in Arizona, 85203 Zip Code is where the property is.
Thanks!
In response to Debra’s comment, it’s bank-owned and as-is, and honestly, similar condos in the market with a working A/C and everything else in great condition, updated appliances, cabinets, fixtures, flooring, and more like this one is, go for about ,000 or higher. I’m set on this property and know I’ll get no assistance from the bank. Any suggestions to make this scenario possible?
Oh, and Amanda, 10% will have to go down on the property, or ,700, and about 0 toward closing costs will still be due from me. That’s ,200 of that gone, with 0 left over, in the scenario that I go conventional.
Oh, and the seller can only pay up to 3% of closing costs (both bank property who’s selling it, and a requirement on a conventional loan, at least in AZ if not everywhere).
Any Zero down home loan out there?
Saturday, February 6th, 2010Thinking about selling but I will walk away with practically nothing. Any zero down or 3% FHA left ?
Does anyone understand this home loan?
Monday, September 14th, 2009I have no clue but friend wants to know
first loan is fixed equity loan at 9.850 (104000)
second loan is conventional is conventional at 9.3 (26,00)
Is this typical? Are the loans both fixed? Should he be worried? I rent so I honestly dont know what to tell him.
Is he in danger? Are two loans for mortgage typical for 1st time home buyer?
104,000 loan fixed at 9.3
27,000 is not fixed it is 30/15?
I dont know what the 30/15 means sounds funky. Its a conventional loan
27,000 loan he said is 9.850 and is 30/15 and the loan type is fixed equity loan. See this is why i rent this is very scary.
He earns over 130,000 a year.
he also has no kids and is single.
he is also single with no children
a web site to enter an MLS on a property to know if its FHA approved?
Sunday, August 30th, 2009Something they don’t normally tell you when you are online looking for a home and when you think it looks like your dream home your hopes are let down because the agent says nope sorry not an FHA approved home so on the other hand that cancels out the fact I could use my VA loan. I don’t want a conventional loan because even though I can aford the 20 percent max down payment I would much rather use an FHA loan considering its less then a 100k loan I am asking for, better yet to build myself more equity in the mean time. So does anyone know a good site to enter an MLS and it will let you know whether or not the property is FHA approved?
Can I convert my ARM to a FR Mortgage now?
Friday, August 28th, 2009Ok, in May of 2007 I bought my first house. Because we made too much $$ they said we couldn’t do FHA. We ended up getting talked into an 80/20 with 80% being a FR conventional loan for 0k at I believe it was 6.25% (it might be a smidge lower) and about k in an ARM HELOC at prime plus one. I don’t remember the cap, but when I calculated it, it was definintely affordable for us- the cap doesn’t scare me beacuse we wouldn’t have purchased the house if we couldn’t afford it. We actually bought an extremely affordable house (4bed, 2bath, 2000 sq ft 1acre for 8k) and we were approved for somewhere around 0k. We make decent money, our jobs are stable and we have absolutely no debt. My question is I have heard that I cannot refi my HELOC into a fixed loan. I would either just want to lock in the rate on the HELOC (best bet since rate is so low now) or add the k to the 30yr FR mortgage we already have. I have heard 2 things: 1) If we don’t have k in equity in the house then we can’t do it, and 2) you can’t convert a HELOC at all — though I have to read my rider, I haven’t done so yet, just thought of this today when rates dropped.
Does anyone know the truth? Also, how much would it cost to refi something like this. I figured it would be approximately as much as a closing, perhaps slightly less?
Oh yeah and 1 more thing that may factor in. While there is nothing wrong with our house we do want to move closer to work (an hours drive away). As soon as the housing market bounces back, we want to put our house on the market and I’m hoping to at least get 9k for it. That may not be for 2 years or so, but I’m just wondering if it would even be worth it to bother to re-fi if we aren’t planning on staying in the house much longer. We also have a solid offer from the people who sold us the house to buy it back from us at the price we paid for it (I told them to take a flying leap if they think I’m that stupid- I’m not, and I’d rather sit on the house than take a loss, thanks.) Oh and I’m guessing, but I have been told by a couple realtors that I know, that the house is worth about 9k now. (of course that is subjective because if no one is buying then it isn’t worth anything really.)
Oh this is all good news, thanks for the answers. I am going to call around next week after I look over my documents. I am 99% sure we are not upside down on the loan for the simple fact that in NC we aren’t facing the same real estate crisis as most other places. Market is still good here. On top of that I have been watching houses in the area sell and I am pretty sure we’d get more for our house than we paid. Also, we bought it from some desparate people who got transferred, I think the house was undervalued when we bought. Our FICO scores are excellent. Mine is around 750 and BF is around 800. We aren’t in trouble with paying; we could pay three times our mortgage and still be fine, that is why we got a cheaper house. I just want to lock in the rate because I know they are going back up (they can’t go any further down!!!). All I am trying to figure out is how to lock in my rate. I always pay much much more than the minimum anyway. 
Thanks again, you’ve all really helped!
We are buying an investment property. With little to put down, what is the best way to finance the property?
Tuesday, August 25th, 2009We have a large amount of equity in our current house.
We have no bills other than the mortgage on our current house.
Is a home equity loan to get to the 20% down payment and then a conventional loan on the investment property itself the best way to go?
Or is it best to finance the investment property itself rather than using the equity in the primary residence. We could finance 100% of the loan purchase price or do a secondary mortgage to come up with a 20% down payment.
Wells Fargo wants 13,000 to refinance my mortgage?
Monday, August 17th, 2009So I have a conventional loan at 5.875%. I want to borrow 30k on my home and pay off 20k in bills so I will be refinancing my home at an additional 50k (I have 125k equity in it). They told me the only way to do this is through an FHA loan. I got the good faith estimate and it says 13k estimated total settlement costs added to my loan! So you’re telling me it will cost me 13k to refinance. Um, this isn’t normal is it?
Can I get a home equity line of credit on an owner financed home? Have legal contract. I live in TX.?
Monday, August 10th, 2009Is it even possible? Want to do remodeling, pay off son’s car etc. Will also pay off house so I won’t have two "mortgage" payments. From what I’ve heard a HELOC is easier/faster to get. What I want to do is take out the complete amount and lock in the rates of the amount I draw out.The reason for doing a HELOC instead of cash out refi is less hassle right? (inspections, surveys and all the assoc. finance bs fees) And you can lock in the rates on the financed portion of the HELOC, with the balance paid like a conventional loan. And those locked in rates aren’t that much different than reg. financing…. just less paperwork hassle right?? Don’t forget it’s an owner financed home w/ legal notarized contract. House worth 80k, considering 40 to 50k HELOC. Thanks!
The part where I’m not the title holder doesn’t make since because they make HEL’s and HELOCS to people that haven’t paid off there home mortgage, hence aren’t the title holder. I wasn’t getting the HELOC "to buy things" I have no credit cards etc. the only loans I have are mine and my sons vehicle. This is the reason to do it, less debt/payments and getting things fixed. I would pay off the house 12k, no more payments, pay off sons car 3k, no more payments, remodel some, need new hvac, general repairs, doing this would lower my monthly outgo by about 0. I would have the rest in savings for college, he starts next year. The reason I was considering a HELOC was I thought it would be easier (less paperwork, inspections etc., and maybe less requirements). And the reason to take all the money out of the HELOC and lock it in was just incase later the economy goes to…uh.. heck, and they can’t withdrawl the loan/offer (which I read they could) I’ll need it later (college) good info!
Related ‘conventional loan’ sites :
| Conventional Loans: Pros and Cons - Financial Web A conventional loan is any mortgage which is not guaranteed or insured by the federal government. Conventional loans were the first traditional mortgage ... finweb.com/mortgage/ | |
| Conventional Loans | Conforming Loans Conventional Conforming Loans offer many benefits that you won't find in other loans. www.loans-101.com/ | |
| Conventional Loan - eHow.com What Are the Benefits of a VA Loan Compared to a Conventional Loan?, Advantages of VA Loan Vs. Conventional Loans? and much more. ... www.ehow.com/conventional-loan | |
| Conventional Loan Requirements and Conventional Mortgage ... Conventional Mortgage Loan Requirements differ greatly from those of FHA loans or VA Loans. Compare your Conventional Home Loan options at Loans-101.com. Its Easy! loans-101.com/... | |
| FHA vs Conventional Loans Find informational sources and get help learning about FHA and conventional loans. fha.mortgageloanplace.com/ | |
| Conventional Loan: Definition from Answers.com Conventional Loan 1. a mortgage loan other than one guaranteed by the Veterans Administration or insured by the Federal Housing Administration www.answers.com/topic/ | |
| Clarion Mortgage Capital: Home Loans, Conventional Loans, FHA ... We specialize in many types of home loans such as First Time Home Buyers, FHA Loans, Conventional Loans, Jumbo Loans, Sub Prime Loans, Hard Money Loans and HELOCS. ... www.conventionalloans.net | |
| Conventional Loan Information | eHow.com Conventional mortgage loans are typically marketed to... Conventional mortgage loans are typically marketed to borrowers with good income levels and high credit scores. ... ehow.com/ | |
| Comparison of FHA loans vs Conventional loans FHA loans verses a Conventional loan. What are the differences? FHA vs Conventional loan, which is better www.fhainfo.com/ | |
| Conventional Loan vs. Fixed Loan? A discussion of conventional loans and fixed loans. ... A conventional loan falls under Fannie Mae and Freddie Mac guidelines (the largest purchasers of loans) ... www.mortgagenewsdaily.com/ | |