sunshine Posted October 8, 2004 Report Share Posted October 8, 2004 Back in April of 2004 we decided to remodel our home due to some structural problems and the community bank we deal with suggusted we go with a construction loan (it would fit the 50k we need to fix problems and remodel what we had to do) well we paid the fee's of title, flood, insurance and appraisal's which is costly....well we are ready to close this loan which is at 5.75% intrest only....and they did tell us prior that they sell their loans to fannie mae or freddie mac and now they are telling us that the only way that they will approve the loan is if the loan is 80% of the Loan to Value and we are at 90%? What the hell do you do? and why did we not know this prior? if we do another appraisal on our home which is $300.00 it is not guaranteed it will exceed another 10,000.00...what does one do? I am very frustrated!!!! Link to comment Share on other sites More sharing options...
liverichly Posted October 8, 2004 Report Share Posted October 8, 2004 Do you still keep in touch with your realtor? If so, he should be able to pull some comps on your home to give you an idea of what your home would appraise for. Nothing is guaranteed with an appraisal, and all appraiser should appraise your home for the same amount - but that does not always happen.What is the current state of your home? Is it torn apart because of the construction loan, or have you not started on that yet? Will the 80% not do? If re-construction hasn't started yet, you might be able to qualify for a Home Equity Loan or Line of Credit for the remaining 10% you'd need. Link to comment Share on other sites More sharing options...
sunshine Posted October 8, 2004 Author Report Share Posted October 8, 2004 I do not keep in touch with realtor we bought it 13 years ago from owner, we are in MI and construction/remodel is all done, I am just very upset that when we applied for the loan everything was fine but within the community bank but now they are at the point to sell it to Fannie Mae/Freddie Mac not sure exactly which one and now they wantt 80 % loan to value of the house and ours is at 90 % right now. Link to comment Share on other sites More sharing options...
liverichly Posted October 8, 2004 Report Share Posted October 8, 2004 Oh, the remodel is completed... did they give you a loan at all or have you done this all with your own funds and now are waiting to get a loan to be reimbursed? Are contractors waiting to get paid for work they've completed? Link to comment Share on other sites More sharing options...
firstsource Posted October 8, 2004 Report Share Posted October 8, 2004 Here is my take on what the Mortgage broker REALLY meant to say. "We had figured that we could make the loan at 5.75 when you were ready for the loan, and now we would loose money if we did the loan", as rates have gone since then. Otherwise, you can get a 90% LTV loan, they will just charge you Mortgage Insurance, due to the fact that it is over 80% LTV. There are lenders that you (or your mortgage can go to) , that are more flexible, and can give you a 90% single loan. Charles Link to comment Share on other sites More sharing options...
sunshine Posted October 9, 2004 Author Report Share Posted October 9, 2004 liverichly, yes we were approved for the 50k loan and we took draws to pay the contractors as they completed work, we are ready to finalize the loan at this point and they did the final appraisal 3 weeks ago, now since the bank is trying to sell the loan to Fanne Mae/Freddie mac they are telling us that they dont want to take the loan at 90% LTV they feel more comfortable 80% LTV....if the community bank sends the paper work through at 80 % LTV the loan is approved with not problems I guess it is the 90 % that is making it hard...... Link to comment Share on other sites More sharing options...
liverichly Posted October 9, 2004 Report Share Posted October 9, 2004 What if it can only be finalized for 80%? How would that affect you? I guess I am not understanding what the problem is. If you already have the items completed, why do you still need money? What if you don't get the loan? It sounds like everyone is already paid... I feel like I am missing something important in the equation.Would getting a Home Equity Loan/Line of Credit to get the remaining 10% not be an option? Link to comment Share on other sites More sharing options...
Recovering Attorney Posted October 9, 2004 Report Share Posted October 9, 2004 Sounds like the bank owes you more than an explanation. Get yourself a lawyer. I suggest you/the lawyer remind teh bank their money is already out the door. If they can't sell the loan into the seondary market, they might have to hold it in their own portfolio. Too bad for them, huh? Link to comment Share on other sites More sharing options...
amortgageman Posted October 9, 2004 Report Share Posted October 9, 2004 If it is a Fannie or Fredie loan, then after the value exeeds 80% of the appraisal, there will be MI insurance of some kind. There is normal monthly MI which would be added to the monthly payment, or there is SAMI, which will let you finance the MI into the loan amount, but not raise the interest rate, and then there is Lender Paid MI which is paid for by adding to the interest rate. This could possibly be messing with your housing ratios or total cebt to income ratis and causing a refer status on your loan.Unless this is a mixed use property (business/home), or manufactured home, non owner occupied or??, you should be able to still get an approval. Link to comment Share on other sites More sharing options...
Guest KARENMW67 Posted October 21, 2004 Report Share Posted October 21, 2004 Call the company that I work for. J & P Appraisal and tell me or them that I sent you. They should be able to help. Email me for the phone number, they are in Michigan.I just closed on my refinance with Charles ( he is excellent ), you too, ANNA. I got approved Monday (10-18-2004) and closed today. The first Bank was a pain in the butt ( appraised value ), but Charles went with another lender and it's a done deal. This Bank's appraisal came back with exactly what my appraiser said. EXACT. An appraiser, I believe can make value fall on either side of the fence. Joe is good and if it's there ( value ) you'll get it, but if not, you won't. Sometimes Banks don't want to do the deal and they chop the appraisal. You see it much to often.Anyway, I have never meet Charles, but he was answering so many of my questions about the other L.O. that I said you know what, go with him,he knows his business.For me I've made the right decision. This board has been heaven sent. And by the way, he never once tried to get my business,by persuading me to go with him. 8) Link to comment Share on other sites More sharing options...
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