I have a loan taken out for almost 100% of the purchase price AND rehab costs of a three-family home, of which I am rehabbing and can resell as three units after the paperwork is filed at the Registry.
Price of home = $750,000
Rehab costs = $80,000
Total Loan = $830,000 (equals appraisal)
One of these will be owner occupied, but right now this loan is qualified as 100% owner-occupied loan…as soon as we get a buyer, we will be completing the conversion, and will sell one at around $350K (comps at around $380)…problem is our current loan more than likely has a “due on sale” clause. ANyone know how we could possibly sell one condo at a time, and get around having to pay the full loan amount back until all the condos are sold?
We qualify for owner-occ because we actually WILL be living in ths and using it as our primary residence until all three are sold.
My lawyer said it’s not feasible to try and put off buyers until all three can close on the same day, nor is it to do lease options while we are awaiting the final buyer…can we refinance the other two untis once we convert and sell one?
Thanks for any help!