What is the best way to finance a new home purchase and addition simultaneously?

Jim asked:


I live in Colorado and plan to purchase a home. Before I move in, I’d like to add two bedrooms and a bath. What’s the best way to finance this all at the same time?

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Tags: Bedrooms, Finance, New Home Purchase

This entry was posted on Tuesday, September 2nd, 2008 at 7:42 am and is filed under Renting & Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

3 Responses to “What is the best way to finance a new home purchase and addition simultaneously?”

1. richgo55555 Says:
   September 4th, 2008 at 12:43 pm

   If your credit is good, you could finance 100 – 107% of the purchase price and save your down payment for the renovation. I am a manager a mortgage bank. Email me if you would like to explore these ideas.
   Thanks

2. Andrew Z Says:
   September 4th, 2008 at 1:30 pm

   You can obtain one of the new Fannie/Freddie Renovation-Rehab loans. For a primary residence purchae, you can finance up to 95% of the total cost to purchase and rehab. For example, a 100k purchase would allow you to finance 95k and you would be responsible for a 5k down payment. There are a lot of guidelines to this loan but if you have decent credit this will may be the most cost effective way to achieve your desired result. I am also a mortgage planner and I provide financing in CO. Please feel free to contact me if you’d like more information. Good Luck!

3. ustelex Says:
   September 7th, 2008 at 10:02 am

   There are also private money lenders which will consider after improved value and would consider the purchase and improvement loans.

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