Mortgage Appraisal Rules
Does mortgage seasoning affect terms or just size of loan?
I just bought a new home with a good down payment, and because it came from a relative, under market value. Together, it leaves me with a + difference of about $150K between the appraisal value and the balance on the mortgage. Now I’m considering getting an equity line for about 40-50K to do some renovations and pay high interest debt, but I wonder how mortage seasoning rules would apply in this sort of situations. Does seasoning affect strictly the percentage of the value you can borrow, or does it also affect the terms? In this case, I’m only interested in getting a line for partial value…does that make any difference?? Thanks!
On a refinance, most lenders allow you to use the value from the appraisal. You can use an old appraisal if it is less than 6 months old (but check with the lender) but in most cases you will need a new appraisal.
Some lenders require you to own the home for 6 months to use the appraised value – this is called seasoning.
If you are taking cash out – there will be adjustments to the rate if the total loan to value is above 75%. A rule of thumb is that the rate goes up by 1/8th of a point for each 5% above 75%. Above 90% LTV cash out, the rate goes up alot more – and you can use up to 100%.
You can take cash out for any reason on refinance – to consolidate debt, home improvement, or just to put in the bank.
Best Regards,
Jossi J Edwards
Omega Professional Realty, Inc.
404-427-0062
http://jossiedwards.point2homes.biz
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The above mentioned are the basic requirements in order to qualify for a home loan. Secondly, I was interested to know how big a home loan I could get considering Mortgage Appraisal Rules. As soon as I knew how much, I could start searching for a house.
Mortgage Appraisal Rules
What is the capital needed to get a mortgage?
What is the LTV needed to qualify for a loan guarantee mortgage? IE: The home is tax determined at 127K. First mortgage is 100k. LTV is 79%. Appraisal value is $ 155k. Using this calculation is 65% LTV. Mortgage loans are based on the rule 80/20 (ie: do not lend out more than 80% of property value)? And the prosecutor or the appraisal value (Less than 30 days old) is more important? I would like to know the trend as to decide a plan to build the property.
First – no bank will lend money based on an assessment of taxes. It must be a good evaluation. and recent. The other is mainly based on state laws and regulations. Texas could not ask more than the 80% rule is speaking. If what you are doing can be shown to improve the market value significantly below can also be taken into account when calculating the LTV ratio.