Ok credit, but need to get cash out of home to fix and sell. What should we do?

Question

The last company recommended 2/28. The loan is my mothers she needs a home with the bedrooms down stairs. Her current home needs a few repairs before we she can sell. The fees and interest have been terrible. is there a mortgage company that is HONEST for people with ok credit if so where? No prepay cost since she plans on selling soon....HELP!!!!

Answer 1

I would recommend an cash out refinance with a interest only loan, with a no pre-pay....Have the term at a 5 year or a 3 yr or a 2 yr interest only....Since she will be fixingup the home - the value when you turn around will be higher, and her monthly payments will be lower until she does sell. Look over my web site - and yes there are Honest Comapny;s out there - unfortuntally there are some that have given us a bad name by being in the "business" for a short time, and out for the money and not the satisafaction of helping our clients. Our clients are our best referrels - Also, Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. Good luck

Answer 2

If you are very confident that you can get a quick sale, a Home Equity Line of Credit (HELOC) may be your best bet. The interest rate can vary monthly, and yes, rates are going up right now, but the fees tend to be much lower than a re-fi or a second mortgage.

These can be tied to a credit card that you can use to access the line of credit. This is especially handy if you can discipline yourself to use it only for the needed repairs. Once the home sells, the LOC is paid off from the proceeds and you walk away free and clear.

A credit union would probably be your best source for this. If you're not a member of one, look them up in the Yellow Pages and see if you are eligible for membership. Virtually everyone in the US is eligible for membership in one somewhere. You'll get the best rates and lowest fees. And since you're an owner, they'll treat you like an owner, not some faceless number in a computer somewhere.

I've dealt with credit unions almost exclusively for nearly 40 years and would rarely consider doing business with a regular bank.

Answer 3

I'm not sure what mortage company would better suit your situation because I don't know the whole situation. But in order to re-finance the house 100% you should find someone within your family that has pretty good credit and that's willing to re-finance it for you. Which means the loan will be in their name until you get it re-finance again in your name or grandma (So I suggest you start working on your credit now so by the time you want to re-finance it again you'll be able to in your name). Of course the family member should be obligated to a portion of that money since it is in their name (It's only fair).