I just bought a house at a foreclosure sale and I am now looking to finance it. It is in a stable neighborhood, market value 100 - 110K. I bought it for 78K and hope to flip it for a small profit, inside and outside need very little work. Only needs paint inside, and carpet, about 4k max.
My problem is my credit is poor, 550, though I have a wealthy relative here who will cosign a loan for me. I put 5%down, leaving a 74k balance. What kind of a loan can I get with a cosigner? The upset period ends soon, and I will need to get financing arranged. Any help will be appreciated.
It is hard to answer your financing question as there are numerous variables. (Full Documentation, Stated, NIV?)
I am assuming that this is an investment property not owner occupied. There are a variety of programs available, you just need to find someone to do a review of your scenario.
how did you buy the house without financing? if you paid cash, you should have no problem getting a few tens of thousands for fix-up from any bank with half a brain.
Ok, to clarify things. I currently am the high bidder at a court held foreclosure sale. Here in NC, there is a 10 day upset period where someone can come in and upset my bid. The requirement is the high bidder must put 5% down. If there are no upset bidders after 10 days, the trustees office contacts the high bidder to finalize the sale. I have bought several houses this way, and do not begin finance arrangements until I know I am the final bidder and the property will be mine. The trustees understand and allow time for arranging financing.
I will flip this propety within 2 months. It is now vacant. I was hoping to get an idea from financial people here what kind of a loan I could get with my bad credit and a cosigner.
Can I get a 75% loan to value? Or can I get a 90% loan based on purchase price? I guess I’ll try calling a mortgage broker or 2 here and run it by them before pulling credit reports. I’m trying to stay away from hits on my credit since my scores are low enough now.
You can go to www.freecreditreport.com to get a free credit report to get you started on a scenario. They will eventually have to pull an official copy, but not until they can give you a pretty definate answer.