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i have really good credit. but no equity. a really good, secure job- teacher, with 7 more years of salery increase ending around 80,000. i am considering buying a home cheap as an investment to sell in 2-4years. Is it possible to get a mortgage that includes enough to pay off exsisting debt and home improvement costs? |
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The whole point of a mortgage is that the real estate is pledged as security for the loan. If the debt isn't repaid, the property can be sold at auction to recover the money. So it would make no sense for a lender to give you more than the place is worth -- quite the opposite, they need some down payment in case the place can't be re-sold for as much as they lent.
There is, however, one FHA mortgage plan, 203k, that allows you to borrow enough to buy a place that needs substantial rehabilitation and also the money to fix it up. You just have to find a local lender who handles that program. Perhaps a mortgage broker could help. Your excellent credit record will help but I think you'll need some cash for even a minimal FHA down payment and other closing costs. |
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Edith
Originally published on August 31, 2008 |
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