Get mortgage after cash offer closing?

Hey all,

I’m putting in an offer on a VA foreclosure with an all cash offer for 30K. It needs about 25K in work. If I close on the deal can I get a mortgage for the repairs and basically to reimburse my “cash offer”? I’m working on a rehab right now where I used a construction loan that rolled the purchase price and rehab costs into one. Its working fine but I want to do a cash offer on this one to see if the good ol’ govt. will bite. Can I do the above?


If you can qualify for a conventional rehab loan then that may be an avenue.

It will be important for us to know the value of the home when completed. Do you plan on keeping the property or selling?

A hard money lender may be able to work with you on that. They are usually pretty flexible when it comes to structuring deals. Their main concern is that the ltv is at around 70% arv.

I don’t want a rehab loan. I’m putting in a cash offer so I can get the lender to jump. No need for a HML.


Sorry, misunderstood how you worded the question.

A conventional loan will require the property to be in a liveable average condition. With $25,000 in work I assumed it was not at that point yet. The loan would be based off the purchase value and not the arv unless completed.

So in order to get your $30,000 back it would require 100% cash out which is not likely to happen. Even more unlikely would be getting additional cash for the repairs.

The only way with a lender to get the funds for fixing up based upon the arv would be to do a “rehab” loan.

Good Luck.