I need some money for a REO - it is not able to be occupied

Financing, Hard Money Lenders, Private Money
1

I am interested in a REO that I looked at. It needs a lot of work. there is mold in the property so it can not be lived in.

the asking price is 190k (way overpriced for condition) I would guess that it needs 40k worth of work. With traditional loans I believe I need a construction loan since it is not able to be inhabited, I could be Wrong though. The property is in the state of Illinois, the area homes are being bought and knocked down with McMansions being built there.

I need to get qualified for some money.

I have 60k for a downpayment that I would feel very comfortable with. My middle credit score is 615. I need the loan undocumented income. I am in the process of fixing my credit now. My credit has collections and incorrect items on the reports (One incorrect item is a 25k college loan that has been paid off, but not removed from my reports).

Please give me advice on how to obtain some cheap money.

Thank you.
Lenny

2

What you could do is apply for a loan with a higher LTV and then show your lender that you are putting the 40K in escrow to rehab the home.

3

How much is the home worth? You may be able to get a hard money loan, it is higher interest but they accept lower credit scores. 615 credit and no documented income is a tough sell to conventional lenders.