| Title: | DCU |
| Notice: | 1996 BoD Election results in 1004 |
| Moderator: | CPEEDY::BRADLEY |
| Created: | Sat Feb 07 1987 |
| Last Modified: | Fri Jun 06 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 1041 |
| Total number of notes: | 18759 |
After two calls to the DCU Mortgage Department, I have two conflicting
answers!!!
I am currently in the process of putting a garage/breezeway addition
on to my existing house. Since I didn't have the full amount to pay
for the addition I was going to get a construction loan for the
addition and then refinance both my existing mortgage and construction
loan into one.
I talked with the mortgage department about a month ago. I explained
in great details what I was going to do and what I needed for loans.
I left it that I would call them to meet when I got the contractor's
bid. Everything was fine, I could get the construction loan.
When I called today to get more information and set up a meeting I
was told that the DCU does not do construction loans on additions,
only new homes! When I told them I talked to someone a month ago
the answer was that they never did construction loans on additions!
Has anyone tried to get a construction loan for an addition?
Which answer did you get?
Confused and now checking out banks in NH!
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 686.1 | focusing on getting the $ rather than your question | BROKE::NIKIN::BOURQUARD | Deb | Thu Aug 19 1993 14:41 | 11 |
It certainly is a frustrating experience to feel that you have everything under control only to have the rules changed on you (for whatever reason) at the last minute. Could you perhaps get a home equity loan instead? (I don't know how the rate on construction loans differ from home equity loans). Good luck! - Deb | |||||
| 686.2 | CSC32::S_MAUFE | this space for rent | Thu Aug 19 1993 14:47 | 13 | |
I've a different idea, I'm going through the same thing, adding an
addition to the house that will cost around $15k. I looked at getting
cosntruction loan and pay a lot of fees and get a higher rate, then
refinance later, pay a lot of fees, and quite likely get a higher rate
than is available today.
Instead, I did a refinance, and since the house has gone up in value,
I can take money out of the refinance, and use that for my addition.
Monthly payments will be the same as now, but I have an addition for
nothing. Almost. Kind of. 8-)
Simon
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| 686.3 | Update to original note | USCTR1::PSTEVENS | Wed Oct 20 1993 15:24 | 29 | |
Hi,
I can now update my original note with more information. The original
reply from the DCU was not a true construction loan. I was told that
if I started my addition at the same time as I applied for refinancing
that the DCU would include the addition when appraising the house.
That of course means that I would need to be far enough into doing the
addition that it would be finished prior to closing. That would also
mean that I would need to have the money up front to start the work and
hope the appraisal came in where I needed it to.
To many variables for me and besides, the reason I needed the
construction loan was I didn't have enough equity in my house to cover
the total cost of the addition and still meet the 25% equity left in
the house.
Current Status:
I am not doing anything with the DCU on this.
I have talked with two banks who will do a combination refinance and
construction loan. In fact the bank I am working with now does it all
with only one closing. Yes there is inspection fees and the closing
cost is a little higher, but its all reasonable in my mind.
I'll supply at least one more reply to update you with the results
of my dealings with the banks! Stay tuned!
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