How much money is given for a mortgage if house needs renovation?

I am looking at a house that is extremely cheap for my market. Realtor says it needs $50k in repair, but I was hoping to put $100K into it to do the full deal (granite/stainless Sub zero appliances etc) Hypothetically, if the purchase price of the house was $100,000, would I be able to take out a loan for $200,000 to do my desired repairs? Sorry if this is a dumb question, but I am a first time home buyer. ThanksHow much money is given for a mortgage if house needs renovation?
There is a specific loan product for your needs. Not all lenders have access to it because it is what is called a ';portfolio'; loan product.





What happens is that you get the plans and specifications for the improvements and they are submitted to the appraiser so that the property may be appraised based upon completed value.





The loan is treated the same as a construction loan in that funds are disbursed based upon work completed. There must be a licensed general contractor overseeing the project.





I am a mortgage lender with more than 20 years experience and my bank, a national bank not a .com, offers this product as its specialty. I can loan in all states and will be happy to answer any of your questions. My name is Nancy, my toll free number is 800-971-4638 ext. 223.How much money is given for a mortgage if house needs renovation?
Mortgage is based on value (among many other qualifying factors). The lenders will not loan based on anticipated value after improvements.





I write a blog on the subject of credit management, mortgages, real estate trends, etc. Check it out for more information that may be helpful.
Do the other similar homes in the neighborhood, already renovated/updated of course, sell for $200,000?





The type of loan you are suggesting could be considered either a construction loan, or a home equity loan. Both of these loans would be contingent on the difference between value of home and what you paid for it.





From working in accounting and credit for years, I think that a bank MIGHT consider lending you the money to make the place inhabitable, but unless you have sterling credit, I doubt they would agree to giving you the money to do the ';full deal'; including the most expensive, state of the art appliances %26amp; interiors.





Good luck.





EDIT**** Listen to the answer below me, she sounds like she has the most knowledge in this subject.





My last word of caution is watch for falling home values, just because a house sold last year for $500,000 is no guarantee it would sell now. Talk to some experienced agents in your area to find out what houses are selling for.