Easy Home Equity Loan

I love reading the advice here.

My wife and I are planning to buy a home in Indiana from our parents, which they own without a mortgage. We’re planning to let the parents finance the sale to us (at a reasonable, IRS-approved, rate).

The current value is about 0K. The home is about 20 years old. It is habitable, but needs repairs (roof, carpet, new mechanicals, cosmetic fixes, etc.) which should rapidly increase its value by 10-20%. We plan to buy the house as-is. We have the K for repairs.

Immediately after that (or during, if possible), we’d like to remodel the kitchen and baths. We will likely want to take a loan (5-20% of the home value) to do it. The parents won’t have the funds for that, so we’ll be looking for a mortgage.

What’s the best course for that second loan?

We don’t want to pay PMI or other unwarranted fees. We have decent credit, 690-710, a low DTI ratio, and good financial reserves.

Any other general advice is appreciated. Thanks!
I seen some answers that suggest a HELOC. I hadn’t thought of that, since I presume the rates will be significantly higher. Wouldn’t a 2nd mortgage make more sense?

Interesting Blogs

I have a 5/1 Interest only loan. Resetting 09/2011.

I want to refinance only my first mortgage from an ARM to a 30 year fixed. (It’s currently 8K)
I want to keep my second as is (2K ARM)

Due to declining home values, I have very little to no equity in our home. However, I just want to refinance the 1st (which would be plus or minus about 80% of my current home value).

I have both loans through Wells Fargo.
WF say they can’t do anything unless I have 10% equity.
So I’m looking around for ideas.

I have: Good credit. No car payments. No student debit. No credit card debt.

Any thoughts or other ideas.
I’m happy to keep my 2nd as is.
Just want to get the 8K fixed at a low rate.

Thanks

Interesting Blogs

I want to refinance just my 1st Mortgage.
I have a 5/1 Interest only loan. Resetting 09/2011.

I want to refinance only my first mortgage from an ARM to a 30 year fixed. (It’s currently 8K)
I want to keep my second as is (2K ARM)

Due to declining home values, I have very little to no equity in our home. However, I just want to refinance the 1st (which would be plus or minus about 80% of my current home value).

I have both loans through Wells Fargo.
WF say they can’t do anything unless I have 10% equity.
So I’m looking around for ideas.

I have: Good credit. No car payments. No student debit. No credit card debt.

Any thoughts or other ideas.
I’m happy to keep my 2nd as is.
Just want to get the 8K fixed at a low rate.

Thanks

Interesting Blogs

I have a first mortgage for 9,000 and a second mortgage for ,000… both are locked rates at 6%. This is my primary property and live in California. The current home value is 0,000….

I would like your opinions, experiences, or advise on whether I should stop paying my second mortgage. I will continue to pay my first mortgage. Both mortgages are current and have never been late over the past 6 years. Divorce has caused my financial need to lower living costs.

PS: I have heard that the bank who has the second mortgage may charge off the debt as the home is worth less than the amount owed on the first – and the first has too be bought out to claim on the second in California.

Interesting Blogs

Home purchased in Dec of ’05 with an interest only loan fixed @ 6% for 5 years. I put 20% down at the time, but home value is now less than the mortgage balance. My wife and I have immaculate credit and are interested in converting to a 30yr fixed, since rates are so low. I would imagine that a regular re-fi is out o f the question due to lack of equity, but could I try to renegotiate w/ my bank to get to a 30 yr fixed? Has anyone done this? Were you successful? Thanks for the help!!!

Interesting Blogs

I have successfully modified my first mortgage and have submitted a modification request for my second. They will not budge and have refused to lower my principal and/or interest rate (12.15%) what are my options? Home Value = 316,000 first=311,000 second=97,000. Serious answers only please…:-D

Interesting Blogs

I bought my small southern california home for 0K. I had my agent pull comps that has my home value at 0K. Zillow.com (which I know is just a best guess) has my home listed at 5.

I am 1.5 years into my 5/1 interest only ARM 100% financing and want to refi to a fixed rate loan asap. I owe 0K on the home. My credit score is 910 (Excellent). I want to put 5% (K) down on the home when I refinance.

Can I roll my existing equity into the new fixed loan?
(current market value 0K – 0K purchase price = K equity in home)

Interesting Blogs

• My 2 year fixed rate mortgage ends in september then moves onto a variable rate.? :: Best Lowest Fixed Rate Home Equity Loan Interest Rates
• Williamstown Real Estate. Fair Market Home Values | Harsch Real Estate Blog
• What to Look for in a Fixed Rate Home Equity Loan | RCST 2007-2010

I wish to purchase my Mother and Father’s home. I am a first time home buyer and due to Credit score around 600 FHA loans are appealing to me.
The home value is est. 5k, we have agreed upon 0k for a purchase price. My parents carry est. 5k mortgage within that a est. 0k is in home equity loans at 2.5%.
Is there a way to transfer the title completely and assume their mortgage which carries a lower interest rate? or do I shop mortgage brokers? or credit unions and banks better?

Interesting Blogs

• 100 percent mortgage financing – Qualifying for an FHA loan | Mortgage loans
• Home Equity Loans Faq | Finance – Loan – Insurance Guide
• California First Time Home Buyer? Let’s Search For The Ideal House! | Internal Affairs