Can I get A Mortgage with a First Mortgage?
I am buying my first house with a FHA loan. Company I use The Mortgage loan is not a 203K and I want to use the money to improve the house. I approved for $ 40,000 more than the purchase price and do not want $ 20K max. My credit is not perfect … I try to find the chances of getting a loan for mortgage with a first mortgage. The house is valued $ 277K and the loan will be $ 229,000. Any help would be great!
A mortgage $ 229,000 on a property of $ 277,000 is a 82% loan to value (LTV) ratio. So you have some flexibility in obtaining a second (usually the max 90% LTV). My first question would be where is the other $ 48,000 from the purchase? If cash, then you'll have no trouble getting a mortgage for about $ 20,000 with your remaining shares (up the 90% LTV). If you arrived at the $ 48,000 Second Mortgage, you're already at 100% LTV and, in particular credit vitiated, I doubt you'll be able to obtain additional funds. The fact that you were approved for $ 40K, over the price purchase means nothing. A bank will only lend up to the value of the house and in the current situation in the mortgage industry, I would surprised if someone was willing to do more than 90% LTV.
