Updated over 10 years ago on . Most recent reply
Personal Loan
Hello all,
I would like to make an offer on a house that I want to be my primary residence. I know that this particular house requires roughly 15k worth of repairs. I would be putting down 5%. I'm wondering if it is smart to take out a personal loan to make these repairs since I dont have that kind of cash to fix the place. I am aware of the FHA 203k option, however I want to know if taking out a personal loan should be an option here. Any input is greatly appreciated.
Thanks!
Most Popular Reply
You should speak to a mortgage officer for specifics, but what I believe you will find is that you would have a difficulty qualifying for both a mortgage and a personal loan. Right now, provided your credit qualifies, you may have no problems getting qualified for a $15k personal loan OR for a mortgage; however, as soon as you go and pull either one of those - you may find it suddenly much harder to pull the other loan. It is for this reason that they came out with the 203k - so that you roll the entire amount into one loan that you can qualify for.