HUD Need financing with good credit, 47%equity

I am in Austin, Texas and I have a contract on a HUD house, tax value of 82K, purchase price of 47K–I am prequalified. My credit is good to excellent but this is the first property I’ve purchased as an investor. I have one rental property and was the o/o when purchased. The property needs repairs and I need a lender. With so much equity, I want to get cash back. If I purchase on a 30-year, best offer is at 6% so far, but no $$$ for repairs. I prefer a mortgage…am willing to do double closing, how do I avoid seasoning? Need more options quickly, I have approximately 45 days to close. All suggestions are greatly appreciated!

One option you have is to do a loan for purchase of property, at same time do a refi scheduled to close the next day or week, this would give you plenty of $$ to repair.

Yes, I thought about that…I keep running into seasoning issues, does that mean I cannot refi for the seasoning period, or am I mixed up? Thanks

No, all you have to do is make sure the lender doesn’t require seasoning…esentially what it boils down to is the Loan Officer knows what they’re doing.

QUICK,
TRY A HARD MONEY LENDER!!! MY PARTNER AND I DID THAT ON A HUD FORECLOSURE WITH MAJOR FIX UPS NEEDED.
THE ONLY WAY WE COULD GET IT FINANCED WAS THROUGH HARD MONEY…
THE OTHER LENDERS DIDN’T LIKE THE “SUBJECT TO” ISSUES ON THE PROPERTY.
I FOUND A LENDER THAT HAS “NO SEASONING” AND WE WILL “CASH OUT/ REFI” THE PROPERTY AT 90%LTV.—THIS IS A NON-OWNER OCC PROPERTY.
SCENARIO:
PURCHASE PRICE-$22,500
FIX-UPS(APPROX)-$17,000
LENDER FEES 10pts
(UPFRONT)APPROX- $4,000

CASH OUT @90%
ARV–$70,000
NEW LOAN$63,000
CASH IN HAND(ROUGHLY)-$20,000 :smiley: :smiley:

esentially what it boils down to is the Loan Officer knows what they’re doing.

Bingo! I got a HUD f/c several months ago. Got a 100% NOO loan (80/20 split). Loan officer said to turn right around and he can refi at 80-90% LTV. I held out trying to resale and finally refi’d just recently.

Hello, Always go with traditional lending first. Use HML as a last resort.

I completely agree. You’d be amazed at the flexibilty of lenders in Austin. There are also other private lenders who may not charge as much if it’s a good deal.

Velicity credit union and a few of the smaller banks have good home equity loans that are based on Tax Value. I purchased an REO and got the home equity loan from Velocity. It was pretty painless. They absorbed my second lien and also gave me a separate home improvement loan. If the home improvement is loan is under 15k, it’s pretty easy to get, but they offer up to 50k I think.