Buying a home and needing money to renovate?
I am trying to sell my house and I want to buy a fixer upper that is liveable, but needs extensive renovation work. How can I get money on top of the loan to use to do repairs? I was told I wouldn’t qualify for a home equity loan because I will not have lived in the new house long enough.
Tagged with: fixer upper • home equity loan • how can i get money • liveable • renovation work
Filed under: Fixer uppers Questions
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You should check into the FHA 203k (rehab loan) or a purchase-rehab conventional construction loan. Wells Fargo has the national largest construction-perm program that can do both of these.
websites below can offer more information.
hope they help
your only way is to go for a personal loan, if you have good credit that is the only way because trough your house its not going to be possible.
Look at asset based or hard money loans. If you can find a property that has significant potential, and you can buy it way below fixed up market value, there are lenders that will lend you based on a percentage of the after repair value.
The cost of money is expensive, but you can refinance into cheaper money after the repairs are done.
Try finding a local real estate investor club meeting to get hard money lender referrals & see if the strategy makes economic sense before you do it. Make sure you do the math.
In addition to the FHA program listed above, also check out Fannie Mae’s "Homestyle" program and Freddie Mac’s "Renovation" program. Both will lend based on either the "as completed" value or the purchase price + renovation costs.