I have been a stay home mom for the last 3 years therefore I have no income verification. (I have a checking account in my name only that could verify aprox. $4,000 monthly income for the last 2 years.)
My credit score is around 670 or so. I would like to start generating income via real estate rehabbing or wholesaling.
I am currently going through a divorce so I cannot use my husbands income since I do not want him involved in any way. (he doesn’t have good credit and would probably ruin a deal anyway…even if we weren’t divorcing)
My question…is this even possible???
If so, where do I turn for financing. (I am in Missouri)
Thanks in advance for any insight,
CF
P.S. I owned my home for 3 years before marrying (we’ve been married for almost 3 years now) I’ve owned the home for 6 years now and I currently have approx $20,000 in equity…some updating could increase this amount.[b][/b]
Based on the information that you have provided it is difficult to give you an honest answer.
You need to find a reputable Mortgage broker in your area. Someone that has experience with Investor Transactions. This person will be able to review your situation in more depth and review all of the parameters and options with you.
There are actually alot of options open to you. But, Mdhaas is right, find a broker. And I would say don’t touch your house equity unless you have a good, quick exit strategy.
If he is the one making the money then you will not be able to get conventional financing without using him to qualify. You could start out by bird dogging and wholesaling until you get a decent bankroll.
Based on your situation you may be able to get Hard Money Loans (HML) for the actual purchase and rehab of a property. You normally need some seed money to work the deal - most will finance 65%-70% of the ARV based solely on the property you buy. They will pay for the original purchase, and give you weekly or monthly draws against the work done on the rehab. The money you need is the amount needed to pay for the portion of the rehab work until you get the draw. Many lenders will give you the loan no matter your income or credit - the loan is based only on the value of the property.
You do have to look around for these - so talk to brokers, and check ads in the apper for “Private Hard Money Loans.” You can even put ads in the paper for “Earn $15% in 6 months - 1st Position TD - 70% ARV, call XXX-XXXX.”
The thing that with your situation - you would probably not be able to qualify for a conventional loan. So your exit strategy should be to sell quickly - either by doing a “Prehab” or a basic rehab and then resell at a discount to retail.