Refinance 110% or Refinance with HELOC?

There's a lot of information missing... what is the rate on your first?? is it a fannie freddie loan? Have you refinanced under HARP already?? If you do a rate and term refinance, it would be to lower the interest rate and your payment... if you're looking to pull money out, the max would be 85% to 90%LTV for a cash out refinance (depending on lenders). If you get a HELOC, you might have a challenge trying to pull more than 100%.. if you have cash, you could pay for your refinance up front, and then do a cash out refinance after the improvements are done... This might be your best option, but to be sure, contact a local mortgage broker, not a bank, and apply with them... they can research their lender database and find the right loan options for your particular scenario... WilliamAcres.com

If you have the cash to do the improvements and then once the project is done, refinance to recoup our cash would make this a cash out refinance. Is it doable? Certainly. However, if you don't have the cash, then you could do this using the FHA 203k improvement loan. Nassau County has an FHA lending limit of $729,750, so your plans fit the program. You definitely need to meet with a local Mortgage Banker who is certified in the 203k program. Only then can you weigh the options to determine what makes the most sense for you. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Keith, home equity loans are not easy to come by these days. I certainly don't know of any lender going anywhere near 100% combined loan to value. And William's suggestion of applying for a cash out loan after the rehab is a long shot too... cash out limitations being what they are, you'll be limited to borrowing no more than 80% of the value if you want to get a good rate... 80% is Fannie and Freddie's max for cash out. You also cannot borrow 110% of the value and take cash out... funds must be used to pay debt and closing costs... that's it. But you do have one option - an FHA 203k rehab loan. This loan will allow you to borrow enough to pay off your 1st, cover all documented construction costs (you can't finance luxury improvements but adding square footage is permitted). The negative is that FHA loans come with PMI... no getting around that. On the other hand, rates on FHA loans are often lower than Fannie and Freddie. So you refi into an FHA 203k, do the improvements and after a year, you can get a no cash out refi without the PMI if the value is there. If you would like assistance with this, you can reach me at 347-766-2674. My office is in Westbury.

Your best option to go wth for this type of renovation is a Renovation Loan with Wells Fargo. -- The even though the Rate on Reno Loans are a bit highter the loan is calculated on the affter completed apppraised value of the the home with the work completed. Call me to better explain the program to you if you'd like. It's your best option (201) 934-4503 -- thanks, Keith -- Keith.Reilly@wellsfargo.com

FHA 203K Rehabilitation Program will be best suited for your scenario, but you will have to qualify with your gross monthly income (or combined with your spouse) if you are employed (W-2 employee) or with your net taxable income, if you are self employed. Monthly payment including FHA Mortgage Insurance will be at about $ 2,439.00 with an interest rate of 4.250% fixed for 30years and "0" points, or $ 2,319.00 at 3.750% fixed for 30 years, same scenario, but you will have to pay 2.250 points for that rate. Because of the small savings of $ 120.00 per month against the up front lay out of almost $ 10K in points, I will not recommed you this option, but it is there and it is up to you to decide. The portion of monthly FHA Mortgage Insurance included in the above referenced payments is at about $ 383.71 (for a total loan amount of $ 418,000.00 as you described it) and it will be required to be paid for an average time of approximately 8 years. After that time, it will be taken off your monthly payment. Of course, to the total amount of the monthly payment of principal, interest and monthly Mortgage Insurance, you will have to add the prorated portion of your yearly real estate taxes and home owners insurance. All these figures add up plus ANY outstanding consumer debt can not exceed 50% of your gross or net monthly incomes. We can arrange this FHA loan for you if you wish. My e-mail is: williams.unitedfunding@gmail.com My name: Claudio P. Williams. My NMLS ID# is: 7734 and we are located in Astoria, NY. Thank you and hope you can find the right financing for your project.

This sounds like a job for a Renovation Loan---either FHA 203-k or a pure renovation loan from a portfolio lender. You'll need to have the work completed by a licensed contractor vs. doing it yourself & you'll need detailed construction plans & specifications along with an appraisal indicating that the value at completion of construction is acceptable to the lender. Best of luck!

Hi Keith in Nassau. We are your local mortgage broker in Fishkill, NY. We can do an FHA 203K to do the project and get a lower rate although there will be PMI for 5 years. After a year you can refi with no PMI if the you have 20% equity and the rates are still low. Call me and I will take your application and provide guidance. ABC 123 Mortgage, Inc., Jeff Mitchell, 845-896-5500 Ext 101.