I spent the last 2 years renovating a large house in California. Comps give it a value of 3,500,000. I have a first of 1,100,000. I have a credit score of 670. I have no income to show for the last two years because I was working on this thing, funding out of pocket. I need to access some of the equity to pay off the higher interest loans. Any ideas?
Mike,
You stated in your posting that you have had no income because of working on this rehab so how can you “state” that you have made income when you just said that you had not??
What you need is a “no income” loan not a stated loan. Stating income when you have none is fraud.
No conventional lender is going to touch this loan. You need to contact local banks and take them a business plan and hope for the best. Asking for a million dollar loan with no income seems like a BIG stretch but who knows you may find someone who will take on the deal because of the amount of equity.
Good luck!!
what if income can be shown on bank statements (but not tax returns)? I am in the boat & have extensions filed on tax returns…
Is it investment property? Bank statements may work for loan amounts of less than 417k.
Hi- Yes, it is an investment property… fair market value 330k per my comps (I am a real estate broker) on the low end, piggyback loans (first 142k and second for 22k, so around 150k in equity); I have income shown on bank statements but have recently fallen back on credit and my high debt to available debt ratio is killing me slowly… credit scores have slipped slowly and I would be surprised if my midscore is >680… I do soft pulls on my FICO and get >680 but lately the lender’s FICO has been 20-30 points lower when I allow a hard pull… I should add that I put the house on the market soon after the refi loan I had been prequalified for was pulled (the day I was set to lock in… that was a bad day)… so I know I cut my own throat there but have heard of hard money lenders with programs that will allow a refi as long as the property has been off the market for 1 day… I apologize for the length, but am hoping to paint a clear picture of my dilemma; I have another property that I am stuck with due to development plans that were made public and resulted in 40% drop in market value (short term, I hope)… anyhow, I’m in a negative equity situation there and am out of cash even though it shows and flows through my bank account… and accumulating debt as I type… but I’ve learned a hard lesson… :banghead still, I know there are others who could be or have been in/heard of such a situation and would be willing to share any tips/thoughts/advice… if they can make it to the end of my post :crossfingers ahhh, ok, hope I translated my brain spaghetti to comprehensible English and appreciate the feedback immensely!!!