The first thing we look at is the amount of equity you have in your home. How we figure the percentage is we take the amount that you currently owe on the sum of all liens that you have on your property (mortgages and equity loans if you have both)and divide it by the appraised value. We can potentially finance up to a 100% loan to value ratio depending on your credit score. For example if you owe 75,000 and your home is appraised for $100,000, if your credit score is at least a 680, we could potentially approve a home equity loan for $25,000.

Which state are you in. On Tue, Apr 7, 2009 at 5:15 PM, bennetbikeshop@gmail. com <.

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Generally Yes. Unless there is a signed agreement requiring reimbursement unless the house is purchased, you will have improved someone else's home with little to no recourse for recouping your costs.

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I own a house i paid 20000 cash for it and dont have a mortgage and i think its worth 25000 now. can i borrow the equity to purchase another 20000 house? my credit is only 550 so i dont think i can get a mortgage and my monthly income is only about a 1000 per month. any ideas i want to buy the house and rent it out. thanks

It is actually often easier to qualify for a home mortgage than an equity line of credit . With your score you should qualify for a loan for 80% of the value of your home, but remember closing costs come out of it.. you might net somewhere around 17k assuming a 25k value. See if the seller will take a note for the remaining balance for the other house. Use any rental income to pay off that second as quick as you can, and then start paying down your home mortgage asap..

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My wife and i bought a newly-built home and moved to just south of jax, fl in 2005. at the time, she was a teacher and we were able to get a special teacher-only deal through boa for no down payment and origination costs on our mortgage. our builder also paid for closing costs, because we went through boa as a lender. we essentially got our $189,000 house in the country for just a $500 application fee. fast forward a few years to last year. both my wife and i changed jobs and earn double what we earned when we purchased the house. unfortunately, the commute to our new job locations was at least an hour away from our house... leaving us with very little time to take care of our house or ourselves. we began renting in town to be closer to work, church, and friends. we tried to sell the house, but the appraised value is now

The only way to get out and save your credit will be to borrow the difference on the actual sales price and loan value, A short sale will ding your credit but not as much as a foreclosure, the problem is once you go down the path of a short sale there is no turning back its either short sale or foreclosure, so if the short sale fails, which majority do your are then forced into foreclosure which will kill your credit for years to come

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I found a great deal on a house i want to purchase. the house is only $49,000 and probably needs around 10k in work. so worst case scenario is 60k. i can get approved for a rehab loan, but they have too many stipulations. (plans, certified contractors, 1st time classes) and that would at least double my repair cost, since i plan on fixing it myself. i have 10k saved so i need around 40k to purchase the house. after i fix it, i can then get a conventional mortage. so i need to find money for 6 months, then pay it off. where should i get this extra cash. can i get a student loan. i have mostly scholarships and currently only have 3k in studen loans and i'm a senior. i can get 15k from my credit card at a low interest. i can refinance my car and take out another 15k in equity from my car. or i can ask my mom to do a home equity loan on her house and borrow it from her. what's the best way to do it. some more details: i am approved for the rehab loan, but obviously not a conventional mortgage, since it needs work. i do have a job, and make enough to cover the mortgage, plus i have two friends that will move in with me. i can get a conventional mortgage after i repair the house.

Student loans are designed to finance an education, not the purchase of a house. You would probably be violating the terms of a student loan agreement by using the proceeds for a house. If you can't qualify for a conventional mortgage right now, then the house is probably a complete wreck or you don't have the necessary income to secure a loan. Either issue means you shouldn't be buying a house at this time.

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I put 50k equity into the house before the mortgage and she put 20k equity, we did not sign any agreement as recommended by our solicitor that if we split and the house would be sold that we would get this back. a friend has told me that because we did not sign any agreement prior to to purchasing the house that whatever equity that is in the property could by law be split 50-50. is this the case and if so how does it work, is there any way to appeal? right now the split is fairly amicable but i am worried she could use this as leverage in the future. i put 50k equity into the house before the mortgage and she put 20k equity, we did not sign any agreement as recommended by our solicitor that if we split and the house would be sold that we would get this back. a friend has told me that because we did not sign any agreement prior to to purchasing the house that whatever equity that is in the property could by law be split 50-50. is this the case and if so how does it work, is there any way to appeal? right now the split is fairly amicable but i am worried she could use this as leverage in the future. i believe we are down as joint tenants on the deeds.

if its fairly amicable then give her what she put in and you what you put in but split whatever the profit the house has made equally.

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I would like suggestions for a plan to buy a house. i currently make about $65k a year, and i live and work in los angeles. my work does not offer any benefits, so i don't have a 401k either. i have excellent credit. i have no savings at the moment; i just finished school and never made enough to start saving. i have a federal consolidated student loan for $55k. i let my parents borrow one credit card loan in my name for $7k, that i expect they will pay off by the end of next year. each month i pay my parents about $800 as they used their home equity line to pay off my private student loans, but that's not reflected on my credit report. at the moment, i pay about $650 in rent, but that is likely to increase since i want to move to santa monica since the commute right now is 1.5 hours each way. i would love to buy a condo or small house and rent out the other rooms to help pay the mortgage and as i would enjoy living with others (at least until i marry) what should my game plan be?

Your idea is a good one. Rental property is a good thing especially if you have the knowledge and skill to do a lot of the fixing yourself. It is a good hedge against income and the equity can strengthen you finally down the road. But for right now you are not in the position to be buying anything until you are out of debt and have a substantial slush fund for emergencies plus the downpayment. If you buy with no downpayment, the mortgage insurance can be significant and you can get yourself into more debt than you can handle especially if the housing market keeps going down while taxes and insurance go up. People buying more than they can afford is the reason so many people are losing their houses right now. They bought what they wanted rather than what they could afford and as they lose the houses the market plummets. You will always have repairs and large unexpected ones do come along and taxes and insurance always rise. You always want to be in a financially secure position and never, never depend on anyone to help you pay your rent. They will move and you will need that slush fund. Roommates can turn out to be a horror and I don't suggest them at all. Be sure to see that old Micheal Keeton movie where he is the renter in San Francisco. It can happen just like that or in varying degrees but it will give you insight. If you think you have the stamina for rental property, think in terms of duplex or 4 family. You're lucky to have such great parents that can afford to help you out. You need to pay them first. Good luck and do a lot of planning before you decide. You sound like you are on your way and rental property is a good way to do it.

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I would like to refinance and use the equity (down payment and any other value property gains from fix-up work) to purchase a second property, what i want to know is how soon can i use the equity in the first house (can i refinance a week after purchase?)

OPM YOU ARE WRONG Buying a home funds at the table no three day period. You can use the equity right away but you only have $85000 equity. To use a new value for the home most banks have a min of 6 months of waiting time. You can refinance a week after purchase but why not do it right the first time?? Make sure that there is NO PRE-PAYMENT If you have any questions please email at Johng@oldmerchants.com

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Under the following conditions: - both spouses work and make equal amounts of money - only one spouse's name is on the loan and deed - only one spouse makes payments on the house - the couple splits all other bills (electric, water, etc) down the middle, with each spouse paying exactly half -the couple were already married when the home was purchased - the home is used as the couple's primary residence in case of divorce or separation, does the non-buying spouse have any legal claim to the house? will judges force the buying spouse to split the equity in the house with the non-buying spouse because they were married when the home was purchased? for the record, we live in texas. also, everyone seems to assume that my husband is the one with the house. the truth is, *i* would be the one with the house. (this is a theoretical situation-- as of now, there is no house. i'm weighing the pros and cons of buying one even though my husband is not in a position to participate in this kind of a transaction at this time)

Depends on your state's laws, but it will probably be considered marital or community property because you both lived there. If the spouse owned it before the marriage, then that spouse has a greater claim on it. If you live in a community property state however (like Texas), then its pretty much half and half.

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Under the following conditions: - both spouses work and make equal amounts of money - only one spouse's name is on the loan and deed - only one spouse makes payments on the house - the couple splits all other bills (electric, water, etc) down the middle, with each spouse paying exactly half -the couple were already married when the home was purchased - the home is used as the couple's primary residence in case of divorce or separation, does the non-buying spouse have any legal claim to the house? will judges force the buying spouse to split the equity in the house with the non-buying spouse because they were married when the home was purchased? for anyone that cares, this is a theoretical situation. neither i or my husband own a house-- i'm weighing the pros and cons of buying one now, even though he doesn't want to / might not be able to for a while. i am a realist more than a romantic, so i like to know what will happen in a worst-case scenerio. also, we live in texas. *lol* and why do you all assume that he's the one that owning the house in this scenerio? i'm actually the one that would be buying the house, not him. i'm just wondering if they would take it away from me if i bought it and we ever got divorced...

The issue of claims by one spouse not on the deed of conveyance over the rights of ownership of the spouse shown on the deed arise automatically under states known as Community Property states these states show that regardless of who is on the deed and the property is acquired during the marriage, then both spouses have a 50/50 interest in the property. These states are: Alaska, Arizona, California, Idaho, New Mexico, Louisiana, Washington, Nevada, Texas and Wisconsin. In the other states the court might order a division of the property interest based upon a partition suit and premised on the claims of the parties, but it is not assured as is in a community property state. Best of luck to you