Posted by Tracy(StLMO) on October 12, 1998 at 21:36:01:
Thanks!
Your info might also help me as we are looking to fund a rehab project here for about 200K (the after-fix-up value will be about 235K; asking price is around 120K and it needs maybe 40K repairs but we want to roll all of our other debt into it so we’re clear. Do you think this sounds feasible?)
If the “institutional” lenders don’t work out, I will look to the “hard money” guys. I have a feeling they will be the ones to help us out. Thanks for the excellent advice. I think I’ll call
on my attorney friend tomorrow and see if he knows of any.
Tracy
Posted by DavidH (MA) on October 12, 1998 at 18:20:20:
Hi all,
Hoping you could help me out… I’ve seen a thread now and then about getting funding for a rehab project based on the after-repair value of the home. Unfortunately, I’ve misplaced my notes on the subject.
Looking for any information concerning getting financing based on the after repaired value, including financing to do the rehab, preferably by drive-by apprasial.
Sorry if this is repetitive information. Thanks for your help!
DavidH
P.S. If there’s a how-to or some other article I should be referring to, let me know.
Posted by SCook85 on October 12, 1998 at 20:44:20:
David,
Tracy gives some good advice for institutional lenders, but I deal with “hard money” lenders.
The first place you should check is with a few mortgage brokers. Many of them deal with the private investors in your area and can line up private mortgages for you. You may be looking at interest rates from 12-18% and 0-6 points. These types of lenders usually don’t even check your credit.
What I found to be the best source to find private individuals that do mortgages is to call settlement attorneys. They have done many deals and have more than likely come across a private lender somewhere along the line. I find that most private lenders use the same attorney/title company for all there transactions, if you call the right one you might hit the jackpot.
Posted by Tracy(StLMO) on October 12, 1998 at 20:00:17:
I know here in St. Louis Fannie Mae has a loan that you can get based on the after-repaired value. They do offer loans like this to owner-occupants as well as investors. You can check this page of their site where they talk about it: http://fanniemae.com/singlefamily/products/markets/emg_homestyle_first.html
Also, I believe FHA/HUD has a 203k rehab loan that sounds similar but from what I’ve heard is a biiiggg headache. I’ve talked to a few people that have done the FNMA one and they say it went smoothly. We are looking to do something like that here so I am hoping they are right!
This site might help also…It lists lenders who specialize in these types of mortgages. http://www.advmicrotech.com/provider.htm
Hope this helps a bit.
Tracy