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Can I include home improvements into a mortgage?

admin — Wed, 08 Sep 2010 19:34:38 +0000

Yes! Just like you qualify for a mortgage you must qualify for any additional loans taken out above and beyond the original mortgage. . In fact, even purchasers with 5% down may qualify to buy a home and make improvements to it. For high-ratio financing, both Canada Mortgage and Housing Corporation and Genworth Capital, insured mortgages are available to cover the purchase price of a home as well as an amount to pay for immediate major renovations or improvements that the purchaser may wish to make to the property. This option eliminates the need to finance the renovations or improvements separately. Some conditions apply.

For Further Information please contact Chris Matthey at www.knowmymortgage.com
Tel: 613-384-4000 or 613-384-4000 x243
Fax: 613-384-4047
Email: chris@knowmymortgage.com

Are foreclosures as good as people say they are?

admin — Wed, 08 Sep 2010 19:04:10 +0000

There is no true answer to this question. The reason for this has to do with A) how the price is determined and B) How offers are dealt with by the lending institution. The price is usually determined by 2 individuals; a Realtor and an Appraiser. First, the bank will choose between the two prices given by the Realtor and Appraiser to determine an asking price. Since the Realtor and Appraiser have done their due diligence to determine the fair market value there is rarely any immediate “discount” in price. Second, the bank must prove they have tried to receive the most money possible for the subject property. For Example: If a Bank Sale is priced at $200,000 and you offer $150,000. You will probably receive a counter offer from the bank at about $198,000 AND you may not get this counter offer for 4-5 business days. By this time someone else could have placed a higher more appealing offer. This makes the likelihood of having a lower offer accepted very slim. Bank sales can be very time consuming and stressful.
You can still get a good deal and make a very profitable purchase on a Bank Sale but it does not happen as frequently as most people would assume. The most appealing benefit to the foreclosure market is usually the condition of the dwellings themselves. Most of them are tired, dirty and do not show well. For someone who is ambitious and willing to take on a project they can usually update, freshen-up and add value to these homes within a short time frame.

Can I use gift funds as a down payment?

admin — Tue, 07 Sep 2010 19:49:20 +0000

Most lenders will accept down payment funds that are a gift from family as an acceptable down payment. A gift letter signed by the donor is usually required to confirm that the funds are a true gift and not a loan. Where the mortgage requires mortgage loan insurance, Canada Mortgage and Housing Corporation requires the gift money to be in the purchaser's possession before the application is sent in to them for approval. Where mortgage loan insurance is provided by Genworth Capital this is not a requirement. See 'what is mortgage loan insurance?' for further information.

For Further Information please contact Chris Matthey at www.knowmymortgage.com
Tel: 613-384-4000 or 613-384-4000 x243
Fax: 613-384-4047
Email: chris@knowmymortgage.com