[adonaitrading]

I just bought a forclosure house for 95,100. It is in good condtion overall but I need to lay new floors, paint and a few little odds and ends. The house just appraised for 125000 the way it is now. We were hoping to do an equity loan to fix up the house and pay off our car. But our lender told us we would have to wait a year because they go off the purchase price and not the appraised value. The question now is: What other options do we have? Is there anybody that would do an equity loan off the appraised value and not the purchase price within the first year? If not, what would be the cheapest way to get 15k? Thanks for any help.

Ryan T,
Thanks for the answers so far. To add a little more info. Credit score is 750 never had any problems with that. We close on the 4/11 and we got a 5.75 fixed interest rate. We are happy with all that. Happy with the purchase price, happy with the loan. Just wish we could go ahead and do the equity line of credit now (right after the closing) To fix some things up. I am 22 and my wife is 20, its our second house we sold our first for a profit. We plan on staying here for at least 5 years. It will probally only take around 4-6k to do what we wanted to for the house. We owe 7500 hundred on our car and its worth about 8000, Our plan was to sell our car after we paid it off witht he equity loan and then pay cash for two cars and then the only debt we would have would be the house. Any other ideas to get a home equity loan?

[ddking37]

I am a real estate legal secretary in Atlanta...that is the first time I have heard that in 11 years, and I own 3 investment properties, (all were bought at foreclosure) and all 3 loans were done on appraised value. I would first suggest trying a different lender, that just doesn't sound right...unless your credit scores or something aren't in line and you have to have "seasoning" (owning the property for a certain length of time) due to your credit history...other than that, I don't see why you would not be able to find a lender/bank (try your bank that you bank with) that would give you a home equity line right now...

add: we are running into a lot of "info" from lenders that their policies and procedures are getting stricter, so what your lender told you may be something new we haven't heard of yet....

add2: hmmm, i'm surprised your lender didn't just volunteer a HELOC for you to get right at closing! (with 3 day right of rescission)...i know Bank of America and Wells Fargo will practically force one on you LOL j/k...try your regular bank you bank with, Sweetie. GOOD LUCK!!!

[mccoyblues]

The first thing you need to do is forget about rolling you car loan into this house.

If the house is going to sit empty while you refurb it try to get a construction loan. Roll the construction loan into the mortgage after the work is complete and you (or a new buyer) moves in.