Financing help with rehab

I’ve a house in contract on a single family house with an ARV of $425K, got it for $245. I got it at a good price but the house needs about $40K worth of updating and repairs.

In addition to this house I have another house in the market for sale that is worth $440 and have a first for $325K. I’m looking for options to help me finance the house in contract and one of the ideas that I’m considering is refinancing the house for sale with cash out or doing a line of credit.

Is this a good idea or do I have other options? any help or advice will be appreciated.

I can go full doc, annual income $175K
credit score in the low 600, however, i’m bringing my debt down my paying off multiple bills below 30% and then doing a rescore.


Do you have it listed with a realtor or FSBO? I always sell my properties FSBO and pay co-operating agents 4%.
In this market at that level you need to be creative and that is something I understand.
You should make concessions of 4%-6% of asking / value to give buyer $$ incentives to buy your home over the other listings.


I would suggest you try to get a HELOC on the property you have for sale. A local bank should have attractive terms on a lower LTV loan.

Your posting was a bit vague on what you were looking for in terms of financing on the new property. Are you looking for a way to get the down payment on the new purchase with financing in place? Or are you looking for a solution on which way you should go in terms of financing?

If you are looking for the down payment only a HELOC to 80% on the currently owned property should get you pretty close to having enough for a down payment or if you are using hard money it will be enough to get you started with repairs that may have to be paid for in advance and then be reimbursed for.

If you are looking for conventional rehab financing you will need the 10% for a down payment but you will be able to go to 80% ARV instead of being capped at 65%-70%.


Do you think it is realistic that he can get a conventional, heloc, or hardmoney with a low 600 score?