My wife and I have found a 4 bedroom 2 bath home that is a repo. Needs about 30k of work and we accepted 30k as purchase price contigent on our ability to finance, which we need to do quickly. Say 5 days. We want to fix and flip the house fixed up will be worth about 85k.
I have been a pharmacuetical sales rep, for six months and before that I sold insurance for 3 years. My credit is 750. My bbandt guy is trying to get us fix and flip financing but I am kinda getting the vibe that it might not work out because he thinks my debt to income ration is not good. I dont understand though considering I only own 63k on my current home and have like 5k in credit card debt. I do have a 30k credit limit on my credit card and I am willing to use that to fix the house but I need to purchase it. Any suggestions on where to turn to get the 30k to buy the house?
With your credit and a couple months PITI reserves 95% financing should be no problem if you need to go stated. If you can go full doc 100% is very possible. If your looking for conventional financing 5 days is a little tight. Many hard money/rehab lenders can fund in 5 days, but it’s still a little tight.
Rehab lenders tend to want to see atleast a 625 FICO, some real estate experience and cash reserves of atleast 10% of the requested loan amount.
Feel free to drop me a line if you would like to explore your options.
Hard money can be gotten that quickly, if you’re willing to pay for it. Usually 4-8 points and 10-15% rate. But keep in mind that you’d only have it for a short period of time.
Also, If you had a little more time, have you ever considered unsecured lines of credit? Pay cash up front, greatly reduces head aches and overall time to flip properties. You qualify.