Subject*rehab loan



Answers
Answer #1

Hello Melissa,

Thank you for your inquiry. You’ll find that lenders aren’t willing to finance a renovation or construction project with only 10% down. The minimum is 20% while most lenders are asking for 25% down payment. The only exception is if you own another property with equity in it. Some (very few) lenders will use that equity as your 20% down payment. If you’ve owned the home for more than 12 months most lenders will use “end value” of the project. Meaning, if the value is 20% higher than the cost to renovate (and any other outstanding liens) you won’t need to come up with much money to get financing.

I hope this helps you,
Skip Kittleson
Access National Mortgage
301-252-7924
NMLS # 658891

Answers Answered By: Skip Kittleson Level Ratingpoints
Answer #2

Melissa,

We require as a bank 25% down for the jumbo construction loan product. We actually offer 10% but the loan must be under 417k depending on property location.
Anyway for your loan is would require 25% down a 720 credit score and 6 months cash reserves. It’s an interest only during the construction phase and we set the terms at either 6,9 or 12 months.

There are other steps and features but I wanted to get back to you with something as soon as I had a minute. Hope this helps and please let us know if there are any questions.

Thanks,

Brent Mendelson
Senior Loan Officer
Monarch Mortgage
600 Jefferson Plaza, Suite 400
Rockville, MD 20852
240-403-1970 Direct
301-412-0259 Cell
http://www.monarchmtg.com/bmendelson
nmlsr#111407

Answers Answered By: Brent Mendelson Level Rating133points

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