Monday, April 24, 2006
Frustrations in getting that darn HELOC FROM HELL!!!
Well most of you don't know, but I have been trying hard to get a HELOC for my house. You know how the story goes, buy old house use credit cards for restoration, now can't pay for everything without eating 1 every 3 days. You know how it is. Anyways I decided to try and get a HELOC, from several lenders, but when I told them my situation (especially the part where I tore out the whole kitchen and bathroom downstairs) they said that getting one may be tough. I have only lived there for almost a year, but the mounting expenses have cut down on what I can do for the house. I'm sure not having a kitchen and bathroom downstairs will only lower the cost of my house. I wonder if there is another way to at least be able to consolidate our house debt. Damn credit cards, they are the devil!!!! Well wish me luck in finding someone that will help me out.
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5 comments on "Frustrations in getting that darn HELOC FROM HELL!!!"
You may want to check out an FHA 203b loan...I haven't done it myself, but it may fit the bill (so to speak)...
We were in much the same situation, and ended up getting a HELOC (prime minus 0.25) with an e-appraisal from our bank earlier this year. Don't tell your lender what you're doing, and they'll be a lot more likely to give you the e-appraisal. Unless you're asking for a ton of money, it is more economical for them than paying someone to come and appraise your house. My good friend is the branch manager, so she explained the whole situation to us, and helped us through it. Email me if you have any additional questions!
Home equity loans don't generally require a walk through appraisal. They tend to check tax records and if needed do a drive by. They don't need to see the inside. They want you to have 20% equity in the property in most cases. This may be a stumbling block if you only have owned the place for a year because in most places the values don't go up enough and it may be 3 to 5 years before a loan will be made. They may make one for up to 80% of appraised value if they are paying off the first lienholder in the process.
You might want to try Sharlene Dano in Springfield. She's great at getting mortgages, HELOCs for Springfield houses and difficult situations. I don't have her number handy, but you can email her at SharleneDano at comcast dot net.
Try a FHA 203K loan - I have one for the house I am closing on this coming Wednesday, which includes mortgage and renovation costs. I believe you have up to 1 year to refinance your mortgage to a 203k after the initial purchase. The loan is based on the after-completed value of the home. www.203k.net (this is a website for Countrywide Home Loans, one of the largest 203k lenders, and who I am using - do not use them, they don't know what they are doing. They were unable to meet my May 1st closing deadline despite assuring me numerous times it would not be a problem). Use Wells Fargo instead.
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