jeff32 Posted December 22, 2004 Report Share Posted December 22, 2004 My wife and I have been in our home for about 7 months now. We know the value of our home has gone up some as they are selling the same home in our neighborhood for 10-12K more then what we paid. My question is, would we qualify for a Heloc/2nd mortgage with only being in here 7 months? Currently the credit score is right at 670 and the DTIR is 38%. We are looking to get in the 15-20K range as we are looking to start our business with some of these funds. Any help would be great!Thanks Link to comment Share on other sites More sharing options...
liverichly Posted December 22, 2004 Report Share Posted December 22, 2004 Jeff, the answer to your question is yes. There are many 2nd mortgage lenders who will take new appraised value after 6 months.You said there are homes sellingin your neighborhood for higher than what you purchased yours for. Appraising is based on closed sales, so are there homes that have sold for higher than you purchased yours for.. or are they just on the market? Link to comment Share on other sites More sharing options...
jeff32 Posted December 22, 2004 Author Report Share Posted December 22, 2004 Yes, there are plenty of homes that have sold for more then ours! Do they base it upon the same home in the neighborhood selling, or do they take an average of all the homes that have sold as we have a planned community that have about 14 different home styles and the prices range from 173K all the way to 250K. Thanks for the help so far! Link to comment Share on other sites More sharing options...
liverichly Posted December 23, 2004 Report Share Posted December 23, 2004 They will try to take model matches to yours. If there isn't a model match they'll use the next closest comparable and make value adjustments off of that. They'll also take the most recent comparable sales, rather than a "high value" sale that was from several months ago. It sounds like you don't have a whole lot to worry about except for selecting a good lender. Good luck. Link to comment Share on other sites More sharing options...
jeff32 Posted December 23, 2004 Author Report Share Posted December 23, 2004 So you think we could get say 10-15K in a HELOC, even if our current loan is 167K and they are selling a comparable home right around 175K for a base model. We have put quite a bit into landscaping and a few upgrades in the home as well. Thanks so much for your help again!! Link to comment Share on other sites More sharing options...
liverichly Posted December 23, 2004 Report Share Posted December 23, 2004 I think it should be possible. If you can find 3 model/lot matches to yours that have sold for X amount in the past 6 months then you should be able to get your home appraised for X amount - in theory. Link to comment Share on other sites More sharing options...
amortgageman Posted December 23, 2004 Report Share Posted December 23, 2004 I am thinking that almost all lenders require a minimum of $10,000 for a HELOC. There may be other alternatives in obtaining a second mortgage with a value at 107% or higher, but with the increased risk, comes a higher interest rate, and stretching out beyoond 100% of the value on the home could cause a very difficult time selling the home until the value increases beyond what is owed on the property. Link to comment Share on other sites More sharing options...
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