Home Refinance/Home Equity Question

[Rich]

I have been planning to do a major home renovation project since last year, the financing for which would have been a breeze 6-8 months ago, but is now much more complicated given the current state of the economy and the credit markets. I live in NJ, Union County, about 30 miles from NYC.

If you are an experienced and honest residential mortgage broker or banker familiar with my market/location, or know of one, and would like to help out a fellow Dukie figure out my options, please let me know how I can reach you or send me a private message with your contact information.

[Fish80]

Banks are lending if you have good credit and sufficient equity in your home. One lender has a very nice no fees variable rate HELOC, but will only lend up to a 75% total LTV.

Reported HPA in the middle Atlantic region is not too bad, about -5% in the last 12 months. (Curiously, New Jersey is included in the middle Atlantic region.) However, lenders are being very conservative on appraisal values.

[Rich]

In order to do the project as planned, we will need 80-85% LTV, which is getting to be very difficult. You're right about the appraisals. Yesterday I received an appraisal that was 22% less than one I received in October. I know the housing market is down, but that seems crazy to me. That's why I'm looking for someone who can provide good, honest advice.

[Fish80]

In order to do the project as planned, we will need 80-85% LTV, which is getting to be very difficult. You're right about the appraisals. Yesterday I received an appraisal that was 22% less than one I received in October. I know the housing market is down, but that seems crazy to me. That's why I'm looking for someone who can provide good, honest advice.

I've seen similar seemingly unjustified decreases in bank appraisals. For example, an appraisal on a home in Fairfield county, CT, decreased 30% from 5/2005 to 12/2008.

OTOH, houses are just sitting on the market for a long long time. There aren't too many buyers right now.

[Rich]

I just thought I'd send this back to the top one last time in case someone who missed it the first time can help.