If the appraisal comes in and “credit scores are not an issue”, you should have lttle trouble.
Understand that if you already own it, you will actually be doing a “cash-out refi”…
I recommend that, if you can swing it financially, that you do the fix ups, get the appraisal based on the property fixed up, and then pull the cash out. This is how I do mine…when the dust settles, I am usually out of pocket just a few thousand, have at least 20% equity, and a strong positive cashflow.
The last one I did:
Purchase: $64,900
Repairs: $1,700 (darn that water heater!)
New appraisal: $77K
New loan (80% @ 6.75%): $61,600
Out of pocket: $5000 plus a lttle bit of closing costs
Equity: $15,400
Positive cashflow: $300+ a month
It’s not a get-rich-quick kinda thing but it adds up!
Thanks Keith, I’ll have to run the numbers and see if that is an option.
I had a loan officer tell me that he’d heard of a rehab loan, but said they do those AFTER the intial loan is closed. He said a rehab loan can’t be part of the initial loan, the lender wouldn’t allow it.