Is it possible to get a Delaware Mortgage for more than the home’s value?
January 2nd, 2008 by John Thomas
If you want to refinance a home you already own in Delaware, there are mortgage programs that allow you to borrower up to 125 percent of the home’s value. The program is under the special program created by the economic stimulus bill of 2009. It is only to lower your current mortgage rate or to switch from an ARM to a fixed rate.
It is generally not possible to buy a home and borrower more than it is worth. One exception is buying a fixer-upper property. There are Delaware loan programs (Delaware FHA 203k Loan) that allow you to borrow the purchase price plus the cost of the fix-up. Both you and the property must qualify. You must qualify income-wise. The value of the property after it has been repaired must be higher than the amount of the mortgage. In other words, you must buy it cheap enough so that the purchase price plus the cost of the repairs end up being less than the value of the home after its completed.
Have a Real Estate question? Feel free to give me a call at 302-703-0727 or drop me an e-mail at jthomas@primeres.com – I am here to help!
John R. Thomas – Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
42 Reads Way, New Castle, DE 19720
I am a Delaware native who has been actively involved in the Mortgage and Finanace industries for over 10 years. Call me at 302-703-0727