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Author: rberent Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127815  
Subject: 90% Future Value Date: 2/26/2002 7:17 PM
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I have been lurking on this board for a couple of months now and have not seen any discussion on loans for upto 90% of the homes future value. I have recently read about these loans in Ric Edleman's book.

As a little background my wife and I are looking for our first home and we both have very good credit, high 700's. I will be graduating from grad school with my degree in architecture. We recently saw a home for sale by owner for approximately $169,000, but the home is in a highly desireable neighborhood and is literally on the same street as home priced around 250,000 - 280,000. The reason the house is currently priced low is that it only has 2 bedrooms, no garage, and the homes in the higher price range have had major additions.

I can clearly see the potential of the house if an addition were put on to it. My question is how do these "Future Value" loans work, if at all? I know that they have to be based upon an appraisal, but as far as financially how much more over my monthly payment for the initial loan would I have to pay and would my down payment be based on the current value of the home or the future value?

This board has been very helpful and
I find it definetly worth the fee.

Roger
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