Forum Archive

Due to the drop in interest rates for conforming loans my husband and i want to refinance our mortgage on our brownstone. We have stellar credit and plenty of income to show but the problem we face is that we are currently in the midst of renovating our house. (doing one kitchen and one bathroom DIY). I was told by my bank that under fannie mae guidelines they can’t give us a conforming loan (the balance of our mortgage is just under the conforming limits for a 2 family) if the property has defects that cost 10k or more to cure. Our plan right now is to finish our bathroom (which should take about 2 weeks) and instead of trying to finish the kitchen just put up some sheet rock and maybe prime it. Logically this should work but does anyone know if in reality that will be enough? I guess the question is what state does a house need to be in to pass an appraisal done for a conforming loan? Any thought?