Boberry
Mar 3 2005, 02:14 PM
Hi
I have excellent credit but little income - $10.000, my husband filed for a bankruptcy in 2000 however had excellent credit previous to that and since. His income is 50,000. We own an unoccupied home with an appraisal of 140.000 . We are thinking about remodeling this single level ranch 3 bedroom home into a four to five bedroom two story cape cod. The estimated cost is $100,000. The mortgage is free and clear on the home. What type of loan should we be looking for? Will we be able to qualify for a low rate? He has a current debt of 2000 car loan. I have a current debt of 8,000 between a student loan and one credit card. Our intent is to move into the home eventually but meanwhile rent it out for $1000 a month which is average to the area. What are your thoughts?
loanuniverse
Mar 4 2005, 09:07 AM
Boberry:
I am not involved with residential/consumer lending. This means that my feedback will probably not be as accurate. The way I see it, your husband is the one making the money and he would have to be in the loan. This means that his bad credit history will come into play. I would personally stay away from a construction loan. If I could get away with a HELOC and use that money for the improvements, I would.
Good luck
MSGulfCoast
Mar 4 2005, 11:27 AM
Actually, depending on your credit scores, you may be able to do a No Income Documentation Kind of loan, which would allow you to use your credit scores and choose whether or not you want your Husband on the loan. He would more than likely be on title, depending on your state regulations.... I would suggest, for the lowest possible interest rates, you simply take the cash for the improvements out of your equity in the home. This way you could roll closing costs into the loan, and still walk away with a check for $100,000. You would be able to shop contractors at your leisure, and, unlike with a traditional home improvement loan, not have to document every step of the upgrading process. I'd be happy to give you a Free estimate of closing costs and rates, payments, etc......I'm licensed in all 50 states. Call me or email me if you'd like to discuss it at length.