There is a house I want to rehab.?
My credit is not good due to no fault of my own. Who, or where can I go to get a loan to rehab this property?
- 1 decade agoFavorite Answer
1) If you don't own it yet, try getting a FHA 203K loan. These loans allow room for up to 35K of repairs. So if a house cost 100k and needs 35K in repairs, they will give you a loan for 135K (35K you use to have the repairs done).
FHA loans also don't penalize you for having bad credit (unless it is under 580). Rates are still gone. You will need to have about 5% down (3.5% for the loan and extra for the closing costs).
2) If you already own it, contact a lender, if he can't help, he may know hard money lenders who are interested.
- kyleLv 41 decade ago
if your credit is bad due to no fault of your own then you can dispute it and get it straightened out in no time and your credit will be great. If this can't be done then you would have some fault in this credit score you have and need to own up to it so you can build on this experience in the future. Seeing yourself as a victim will never help you get ahead. Even when you are truely a victim of anything, there comes a point where you stand up and say to yourself " I am not a victim any longer, I am taking my life back and taking care of myself so I can be in the best position for the future". As far as a rehab loan, you should not need one. You should use all cash. Now this will take longer but with the tight housing martket especially now as well as always. By using cash you can keep your costs down by not paying any interest and you will learn a lot by taking your time to fix and rehab this house. I've been doing this with the duplex I am living in and I have cash flowed about $25,000 in improvements in 2-3 years making only $45,000 a year. If you want it bad enough you can do it. Debt is not the answer, you are.
- Spock (rhp)Lv 71 decade ago
so what are you putting into it?
rehab houses are always a risky situation from the viewpoint of a bank. usually, they want nothing to do with financing them -- and that's in good times.
now, if you have 1/2 the total cost to put up in cash, maybe a local bank will take the risk if you present a good plan and have solid experience doing this sort of work.
otherwise, about the only chance is the bank that has foreclosed on it already or a local family with money to invest and experience with doing deals -- and they'll insist that the title be in their name and that you contract to buy it from them.Source(s): ex-landlord
- Anonymous1 decade ago
Try friends and family, if you have a decent amount of equity you can offer a percentage to them in exchange for the money. Before you start your rehab you should check out this book it will save you a lot of money dealing with contractors.Source(s): http://www.realestaterehabcoaching.com