I have 80/20 loan on my house (northern NJ) my credit score 750+ across the board, my debt to income is around 30 – 35 % and I was thinking of a way to pay off the 20 %( 78K) quickly. So I was thinking of maybe flipping a house in the summer after saving up about 10k and use the profit after resale to payoff the 20%. Do you guys think this the quickest way? Is there a way to get financing to purchase and pay for rehab without saving up and spending the cash? Is this feasible or am I just California Dream’in.
Yes, it is possible to get a rehab loan to do the fixing up front but the loan amount/LTV is restricted if the property is non owner occupied. I’ve seen it on primary and second homes though.
TDBFlynn
Loan Officer
With those great credit scores and other criteria you should look at a rehab loan. On a non owner occupied property you can get up to 90% of the after repaired value. This would cover the purchase and funds to fix up the property.