Posted on: 02nd May, 2008 04:47 pm
I am considering purchasing a 2 Unit property in rough shape and before I go ahead with an offer would like to find out about potential financing. I think the condition of the property will mandate that it has to be a Rehab loan.
The property will approx sell for about $115K and needs about $40K in repairs. I might move in there once it is fixed or just keep it as an investment. Also, I can make a downpayment of 20% or more and prefer a Stated Income loan.
Any suggestions, which lenders might do such a loan in PA and any advise on what program should I be looking for? Will this qualify for an FHA program?
Thanks,
Simon
The property will approx sell for about $115K and needs about $40K in repairs. I might move in there once it is fixed or just keep it as an investment. Also, I can make a downpayment of 20% or more and prefer a Stated Income loan.
Any suggestions, which lenders might do such a loan in PA and any advise on what program should I be looking for? Will this qualify for an FHA program?
Thanks,
Simon
Hi Simon,
Welcome to the forum.
As far as I know you cannot get more than 20,000 as a Rehab loan. But you need 40,000 right? And to get approved for a Rehab loan you will have to be a low income individual. So, check out in the Rural Development office whether you get approved for this loan or not.
Best of luck,
Larry
Welcome to the forum.
As far as I know you cannot get more than 20,000 as a Rehab loan. But you need 40,000 right? And to get approved for a Rehab loan you will have to be a low income individual. So, check out in the Rural Development office whether you get approved for this loan or not.
Best of luck,
Larry
Hello Simon,
I feel you can go for a construction-to-permanent loan if you cannot qualify for a Rehab loan.
In a construction-to-permanent loan the lender will finance the loan to construct the home and when you will occupy the home the loan will be converted into a mortgage.
Feel free to ask the community if you have any further query.
I feel you can go for a construction-to-permanent loan if you cannot qualify for a Rehab loan.
In a construction-to-permanent loan the lender will finance the loan to construct the home and when you will occupy the home the loan will be converted into a mortgage.
Feel free to ask the community if you have any further query.
Thanks for your replies.
Just to clarify and avoid confusion: I need a Stated Income, Renovation loan for the entire amount of the deal. That is $115K to purchase the 2 Unit and then another $40K to complete the repairs. So ideally I want to finance approx $124,000 (115K Purchase+$40K repairs=$155k-20$ Downpayment=$124K)
Any ideas which lenders should I approach and what specific type of program to look for?
Thanks,
Simon
Just to clarify and avoid confusion: I need a Stated Income, Renovation loan for the entire amount of the deal. That is $115K to purchase the 2 Unit and then another $40K to complete the repairs. So ideally I want to finance approx $124,000 (115K Purchase+$40K repairs=$155k-20$ Downpayment=$124K)
Any ideas which lenders should I approach and what specific type of program to look for?
Thanks,
Simon
Hi Simon,
Welcome back.
I think you may not get the Rehab loan. But can go for construction-to-permanent loan as Jenkin has also mentioned above.
BTW you can get No-obligation free consultation from the rated lenders and mortgage professionals in the community to know which kind of loan is appropriate for you.
Best of luck,
Larry
Welcome back.
I think you may not get the Rehab loan. But can go for construction-to-permanent loan as Jenkin has also mentioned above.
BTW you can get No-obligation free consultation from the rated lenders and mortgage professionals in the community to know which kind of loan is appropriate for you.
Best of luck,
Larry
Hi Simon,
FHA is not an option for you because they only do full doc loans on primary residences, BUT if you can put 20% down, and if you purchase it as a primary you may want to give it a shot b/c their debt ratio guidelines are larger than conventional ones so you may qualify. Doesn't hurt to check.
Other than that, I agree with Larry and Jenkin, that the const-perm is the way to go.
Kim
FHA is not an option for you because they only do full doc loans on primary residences, BUT if you can put 20% down, and if you purchase it as a primary you may want to give it a shot b/c their debt ratio guidelines are larger than conventional ones so you may qualify. Doesn't hurt to check.
Other than that, I agree with Larry and Jenkin, that the const-perm is the way to go.
Kim
Hi Simon,
Welcome to the forum.
Honestly i think that what larry and jenkin said is probably your best option!:)
All the best
Welcome to the forum.
Honestly i think that what larry and jenkin said is probably your best option!:)
All the best
Simon,
At the moment the market for stated construction or rehab loans is pretty much un-heard of. Most if not all lenders have revoked any such programs. Mosy of the clients I deal with are going with unsecured loans in order to complete repairs if they can not verify income. Good Luck, I hope you find what you are looking for.
At the moment the market for stated construction or rehab loans is pretty much un-heard of. Most if not all lenders have revoked any such programs. Mosy of the clients I deal with are going with unsecured loans in order to complete repairs if they can not verify income. Good Luck, I hope you find what you are looking for.