How do mortgage providers handle loan amount request to cover purchase cost plus renovation cost. eg. House will cost 175k but needs 50k renovation work.
given.. borrower will qualify 225k purchase loan.
How do mortgage providers handle loan amount request to cover purchase cost plus renovation cost. eg. House will cost 175k but needs 50k renovation work.
given.. borrower will qualify 225k purchase loan.
Maybe I didn't make the question clear...
The borrower has mortgage approval for 225K ( all conditions are met ). Would the (or any) mortgage provider approve of a client then (say) buying a property (to live in) for 175k and spending 50k on required renovations....
Maybe I didn't make the question clear...
The borrower has mortgage approval for 225K ( all conditions are met ). Would the (or any) mortgage provider approve of a client then (say) buying a property (to live in) for 175k and spending 50k on required renovations....
I don't think so.
If the property costs €175K then the most that can be borrowed is 70%, 80% or 90% of that depending on the category of borrower and assuming no exemption/deviation from the general lending limits.