Hello, I am new to this entire idea, I am just looking into feasability. I would like to buy a house to rehab and then sell for a profit. I own a house and plan on keeping it. I have good credit, but not excellent. I have very little savings and no extra cash. In fact, the main reason I am looking into this is to pay down my credit card debt, which I consider significant.
Could I even get another mortgage? I think I could do rehab with my available credit, if I couldn’t get a construction loan or rehab loan. Am I looking at this backwards? Should I concentrate on paying off my debt, which will take in excess of five years at my current rate, and then save some money to get started? Any advice is appreciated.
Another thought. MY husband’s best friend is a mortgage broker who underwrote our current home loan and immediately sold it to ABN AMRO. I am currently trying to get an idea before asking him about mortgage options. Is there an added benefit to having a friend in the business, like could he underwrite where a standard broker would say no or are there guidelines he would be bound by? He probably could underwrite a loan himself, but is there any point in asking or would he probably say it is a bad idea based on our debt to credit ratio etc…