Looking for legal yet creative ways to do this. Then we'll have money that we need for a few small improvements. Maybe about $15k more...
2007-11-04 01:33:44 · 5 answers · asked by purelygeneric 1 in Business & Finance ➔ Renting & Real Estate
Those loans no longer exist, especially as the market continues to decline and lenders are tightening their requirements.
2007-11-04 14:22:44 · answer #1 · answered by Anthony 3 · 0⤊ 0⤋
A lot depends on the lender and the appraisal. If the price is lower than the appraised value then you may be able to secure a loan, but as someone else in this forum pointed out credit is a lot tighter now because of the sub-prime market. But I would also add that housing values continue to spiral down instead of increase.
If you are looking at a handy man special or a foreclosure try to buy the property for $15k under what is a reasonable price. Once you have secured the loan and close on the house find a family member or a friend to loan you what you need to fix the property to your liking. Sometimes an employer will advance you money in anticipation of a year end bonus or you may be able to get a signature only loan from a bank if you have excellent credit.
There is more than one way to skin a cat. If it is a foreclosure and there are damages to the property needing repair make those repairs a part of your offer. An experienced REALTOR will be able to help you put together a good offer and the best part is that he or she will be compensated by the seller!
2007-11-04 09:16:20 · answer #2 · answered by Othniel 6 · 1⤊ 1⤋
I used a program called 203K thru FHA before but I do not know if it currently offered in your area for your credit rating or would fit this property. In my case, I bought a house for 18K, and the lender funded the rehabs and paid out those funds in settlements as the work was completed. After all repairs were finished, I had paid myself enough in labor costs to have none of my own money in the deal and owed a total of 29K and the house appraised at 45K. This is a rental I still own, which is now appraised at 114K.
2007-11-04 16:07:39 · answer #3 · answered by Jerrold J 3 · 0⤊ 0⤋
Thanks to the subprime fiasco, those days are now gone. Lenders now are fairly tight with their criteria for mortgage loans, and they don't like what you are suggesting. Part of the problem they see is that your $15,000 in expenditures won't raise the value of your real estate by $15,000.
You might contact a mortgage broker to see if they have any creative ways around your issue.
2007-11-04 08:41:16 · answer #4 · answered by acermill 7 · 0⤊ 1⤋
Yes. There are programs called 115 or 125. you can take out up to 125% the value of your house. Try the Honor state bank I knwo they do this type of loan.It depends where you live though.
2007-11-04 11:45:41 · answer #5 · answered by Helping you 2 · 0⤊ 2⤋