11-04-2010 05:48 PM
11-04-2010 06:10 PM
11-04-2010 07:25 PM
LTV will be based on the value after the work is done. So assuming right now you are at 100% ltv of say...150K home. Then you put 15K into the home for the remodel. Say it then adds 20K in value (133% return on investment which is totally unheard of). That would mean that you now owe 165K on a 170K home. That leaves you at 97% LTV.
Do you already have etimates for adding the room and bathroom. 15K seems really low and you do not want to lowball something like this. If it is a new bathroom and all plumbing has to be run, the plumbing alone should be in the 5K or more range, yet alone all of the finishing in the bathroom and the new bedroom. You also will have to have all new electric work done and all permits, etc. When doing this type of loan, there are no real shortcuts to minimize costs as they want to make sure the work is done correct, fast, to all codes, and will give the needed return for the LTV. Unless you are a licensed GC, all work will have to p=be done by professionals and will costs a bit.
BTW, not trying to questions your judgement in any way, I am just wondering if those numbers are hard numbers or a figure you came up with. I am sure that where I live things are a bit more expensive. But where I live, the basic plumbing and electric work would run me close to that 15 grand, yet alone drywall, texture, paint, trim, windows/doors, and bathroom fixtures, etc..
11-04-2010 08:42 PM
12-10-2014 04:39 PM
The value of the property is based on the after repair value and the cost of the 203k can be rolled into the refinance, as well as the soft cost in the loan. But your 1st idea about a tite 1 is much lease expensive and time consuming.
05-26-2015 07:44 PM
I'm looking into one of these loans. The idea of having to have all the bids up front and know exactly what we are doing seemed overwelming. Was there any wiggle room when doing these. What if we go to do something and find mold or some other issue that wasn't orginally in the bid. Has anyone finished remodeling with one of these that could explain the process better. I just don't want to be sitting there with no money if anything comes up and no be able to finish the remodel. O.o
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.