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What is the best way to finance a new home purchase and addition simultaneously?

I live in Colorado and plan to purchase a home. Before I move in, I'd like to add two bedrooms and a bath. What's the best way to finance this all at the same time?

Public Comments

1. If your credit is good, you could finance 100 - 107% of the purchase price and save your down payment for the renovation. I am a manager a mortgage bank. Email me if you would like to explore these ideas. Thanks
2. You can obtain one of the new Fannie/Freddie Renovation-Rehab loans. For a primary residence purchae, you can finance up to 95% of the total cost to purchase and rehab. For example, a 100k purchase would allow you to finance 95k and you would be responsible for a 5k down payment. There are a lot of guidelines to this loan but if you have decent credit this will may be the most cost effective way to achieve your desired result. I am also a mortgage planner and I provide financing in CO. Please feel free to contact me if you'd like more information. Good Luck! azemon@greenwoodlending.com www.cvillelending.com
3. There are also private money lenders which will consider after improved value and would consider the purchase and improvement loans.