Would HML work for this property?

[PA-Agent]

There's an REO property that I found that's in a decent neighborhood and looks good from the outside. The details are:

Location - Pennsylvania
Price - $40,000
Market Value - $115,000

Remarks in MLS says it needs some work. I haven't gone out to see it yet to verify how much.

I'd love to fix it up (depending on repairs) and either sell it or do a rent to own.

Here's my problem. I don't have the best credit so me financing it with a conventional loan will probably be slim. Do hard money lenders work with people with poor credit with this much possible equity? Will they also finance the money to fix it up?

[trwilliams]

PA-Agent

HML's look more at the project and less at credit. most HML's lend 65-70% arv. However HML's come at a higher price, but depending on the amout of work this needs this could be a great HML option.

I should mention that obviously HML is last resort and also only use them for short term. So if you plan to flip....by all means


trwilliams

[rbw]

I checked into it and would not be a problem at all going conventional, ton of options with those numbers.

Since its a rehab you are probabbly looking at a half a point more than a normal mortgage, depending, but a whole lot cheaper than a hml.

my 2 cents

[abloans4u.com]

Depending on how low your scores are and if the repairs are needed to get the property occupied. You could probably go conventional. There are programs now for as low as 500+ scores.

Good luck

[ewowens]

It may work but remember you must be 65% to 70% ARV.
 
Hope this helps