Financing general question

Financing, Hard Money Lenders, Private Money
1

Hi guys,

I am very new to this, in fact rehabbing my first home in which I am living. I have read several books and cannot find this very basic answer.

I don’t understand how I can get a loan for a second house to rehab when it was so difficult to get a mortgage for my first house, ie all the paperwork, verifying employment, etc. Certainly if I refinance I can take out the $ for a downpayment on another house but the bank isn’t going to give me another mortgage because of my salary.

I know this is a novice question but could you please point me in the right direction?

Thank you kindly!

2

you are going to have to possibly look into creative financing methods.
this depends more so on your credit score though… if you have a 680 or better credit score then I am sure that you should be able to find an investor loan program using traditional means can be obtained…

if not then you will have to look into other sources such as hard money or private investors…

its not much but I hope this helps some at least

3

There are equity and credit score driven that will lend on future projects if you have a 680 score and the requested loan amount is under 80% ARV.

4

Thanks guys for your responses. Looks like I will work on my credit!

5

Work on your credit, absolutely.

But dont let that stop you from possibly achieving your investment goals.

As mentioned in an ealier reply, there are hard money lenders that will help you with your rehab loans.

These loans are based upon the properties after repaired value. Average is about 70% arv. This loan will cover the costs, payments, fix up, and purchase. You need to be finding properties that are at about 50-55% below the market value (arv).

If you need more advice on this, I’d be happy to point you in the right direction.