I bought a house 8 months ago that need $40k in repairs. The house has no equity and my credit score is low. (Bad situation)What options do I have to finance the repairs without selling? (Although I am thinking of selling.)
2007-03-05 10:27:51 · 2 answers · asked by nella20005 2 in Business & Finance ➔ Personal Finance
just how low is your score and how much is the house worth. I have a freind in the lending business. they may be able to help you.
2007-03-05 10:35:52 · answer #1 · answered by spiritwalker 6 · 0⤊ 0⤋
Hi, there are a couple or routes you could probably take. First, ignore those silly FICO scores (I know, we can't ignore them entirely, but still). You have 8 months of payments under your belt. That's significant. See if your lender will refinance you under 203(b). What that is is a loan program, financed through your bank but underwritten by the feds (or guaranteed) that would allow you to borrow $$ to buy the house plus the additional $$ to fix it up. This route will be full of red tape, but it is an option.
You said that you purchased 8 months ago and have zero equity in the house. Though you didn't put any $$ into the house initially, the value of the house may've gone up enough where you can cash some $$ out of the equity. It's a long shot but ultimately worth looking into.
Finally, there is a peer-to-peer lending site (sorry, I do not have it in front of me, but google "peer-to-peer lending" and it'll come up). You write a page about yourself and why you need the cash. People pony up money to lend to you. You'll pay a little more in interest but it is definitely looking into.
Good luck to you!
2007-03-05 18:41:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋