Problem Re-fi primary residence w/large gain? - Posted by roundhouse
Posted by roundhouse on July 14, 2001 at 12:03:44:
Hi, Have a situation I need help with.
IN May of 2000 we bought a run down house in a very nice NH. We used a FHA first time homebuyer loan with 3% down @83/4 %
The house needed major structural repairs, it is a 2 story, round house built in 1970. Each side is 8 feet long
has 13 sides.
Had rotten floors, rotten joists, rotten studs in some of the exterior walls, and on of the sides, the first floor had leaned out and slipped out from under the second floor.
We have corrected all the probs, along with remodeling the bathrooms,(had to get rid of the harvest gold toilets and sinks, and Blue shag carpet) total paint inside & out and new carpet, hauled 4 pickup loads of rocks & stumps/limbs from the yard.
The houses in the NH are selling for $170- $210K.
HERE’s the prob, wanting to re-fi and lower the rate and pull some cash out (wanna buy a trailer park), we got approved for 7.125, mtg brokers appraiser, put the value at $170K, but the lender went bonkers and backed out when the found out we only paid $100K. I quote “Theres no way a house can be worth $170 if you only paid $100K for it a year ago”
I have the report from the structural engineers inspection telling the FHA what was wrong, at the time of the original purchase, and stating there was no eminent danger of the house collapsing on the occupants.
So I can prove the house was in poor condition at purchase.
What should my next plan be?
We are thinking of just doing the FHA streamline to lower the % but I suspect we will have a hard time getting an equity loan as well,local bank is advertising 100% equity loan at 8.5% but havent applied cause we didnt want more inquiries, our FICO is above 700 on 2 of the 3 reports.