How do you rehab home with no money down?

Question

My husband and I are wanting to rehab a home.We found one for $40,000 that the bank owns and we think we can get for $35,000.It needs about $15,000 in repairs.(Maybe sell for high $70,000 when complete)My question is without touching our house note(equity line of credit,ect) what is the best way to go about getting a loan for this project w/o any $ down.We have excellent credit and was told possibly a construction loan where you just pay on the interest as you go.Any ideas would be greatly appreciated.

Answer 1

As one that does rehabs that is what your HELOC Is for. You will be able to pay it back once you sell the property. You have alreay paid the fees and points on your HELOC.

You are about to throw away a lot of money with fees, points and other closing cost which will take away from your profit. Why would you do that.

You should get you some handy men and complete the job inside of 30 days also advertise the home for sale while it is being repaired. It should take no more than 10-15 days to complete the repair on a rehab job.

If you do it this way by the time the payment roll around for the line of credit payment you will have sold the house.

Now if you plan to go about doing the rehab yourself instead of farming the job out you might be doing yourself a disservice because if you have a regular job, you will only be putting in about 8-12 hour per week on the house which is about 48 hours per month. Do you really save by doing this? You have to figure it out for yourself.

The only other thing to do is get you several investors that will invest in your projects for a percentage of the deal. You could make it a loan and simple pay interest instead of giving away part of the project.

I hope this as been of some use to you, good luck.

"FIGHT ON"

Answer 2

1. Construction loan.

The lender might turn you down based on experience or lack of enough equity in the project. Or they might want you to provide more security.

Note the costs. It could be a lot less expensive to use the line of credit on the primary home.

2. Hard money loan. Expensive but based on the property alone. You pay extra in rate and terms but get a loan without your credit or your personal home.

There are other minor variations.

A rational lender will say what is the reason you do not want to use your existing facility on your home? You will likely spend less that way. If you do not want to take the risk then the lender will think that you see risks that they are not aware of? If they lend on the home and you fail to pay how is that any different if you use the line of credit and fail to pay? At least from the lender's point of view?

See what the construction loan will cost and the requirements. You want to build a track record so expect that the first few times you do this you will not get great rates and terms. Still consider that route so you build history with the lender.

If you feel that using equity in your home is too much risk find a way to reduce the risk rather than assume you should keep the two separate. You might still keep them separate but you want to manage the risks prudently rather than just put things in different buckets.

Answer 3

You should contact a good broker but it my experience you will have to at least pay for renovations out of pocket or with credit line. If you put down 15K you can use that money from the credit line to fund renovations. Traditional banks make you wait a year before you can begin to cash out on the property unless you use the equity from the downpayment. I believe there is a 203(k) but I think it only deals with certain types of properties HUD. A consrtuction loan might work but you have to deal bank appraisers every week coming to inspect the property before the disperse more money into your account. The best way is to get 100% financing and ask for a sellers concession to pay for closing costs. You should then take out a HELOC for 15k on your current home. Payments will be interest only; so only a few hundred dollars will come out of pocket per month.

Answer 4

If you have a excellent credit, you could get an 80/20 loan. I got one from Countrywide, 20% of which is through a HELOC and the 80% a traditional mortgage. No money down.

But perfect credit required of course. Slightly higher rates too, so you want to make sure you get that down on paper.

Hope that helps!

Answer 5

Get a 125% home loan from the below company

Answer 6

Contact City Hall. may citys have grant programs where they will give you money for rehab as long as you make under a certain amount of money. Most of these grants are free and you have to pay nothing back as long as you live there 7 years!

Answer 7

you are able to have "status" to sue somebody. status demands which you have a concrete harm brought about by skill of the defendant that a courtroom can redress. you will not be able to sue on a 0.33 party's behalf except you are able to show a significant courting that quickly impacts you as properly, including a determine suing on behalf of their minor newborn. additionally, some businesses have been able to sue on behalf of their contributors such because of the fact the ACLU. however the only subject you're able to do is turn them in to the government and enable them to do their own examine, or you ought to alert the families of the human beings you witnessed being abused. that's a threat that they don't even comprehend of the abuse. Edit: If the degrading issues they did to "you" brought about such psychological misery which you have actual indications springing up from it (with a doctor confirming it), now and returned you are able to report a declare for intentional infliction of emotional misery (IIED). yet those are extremely not basic to win and maximum courts look down upon that declare as a bogus tort.

Answer 8

You can take out a HELOC on your home to cover the cost. When your rehab sells, pay it back if it make sense at the time. Please feel free to contact me in regards to rehab money & noo purchase money.

Best Regards,

Anthony
[e-mail]
www.lowermydebtnow.com