NJ Construction Loan (203k, bank, lender, FHA)

[tb582]

We are looking to buy our first house. Whatever we decide to buy its likely we will need to build a addition onto the house as in "in-law" area for my parents. So we are currently renting right now so we don't have a house to sell but would it be best for us to buy a house with a conventional mortgage and then add a construction loan on top then once its done it the house reappraised?

[desertsun41]

No. Take out a 203K rehab loan.

Go investigate it here: Rehab a Home W/Hud's 203k Rehab Program

It's an awesome program and it follows FHA guidlines so it is not too hard to get, especially if you have construction experience.

[tb582]

Originally Posted by desertsun41

No. Take out a 203K rehab loan.

Go investigate it here: Rehab a Home W/Hud's 203k Rehab Program

It's an awesome program and it follows FHA guidlines so it is not too hard to get, especially if you have construction experience.

Can any bank give out these types of loans? so I could go down to my local bankNorth and apply for one?

[desertsun41]

Not all banks do FHA. And those who do you still will have to search out some one who specializes in 203K loans. Try real hard to find that person too. The last thing you want is a lender to say yea we do them and then they learn as they go along because they never did one before.