I am nearing the end of my first rehab, but can no longer cover the monthly mortgage. The house is complete aside from interior paint. The house will go up for sale in one week, but I need money to carry the loan through the sale. We have one income and two mortgages…any chance on a cash out refi or equity loan to cover costs until the sale of the rehab?
The loan balance is $365,000 and will appraise at $530,000++. Also, our primary residence has at least $150,000 equity. What do you all think?
i would go for the line of credit on your primary res, if possible. If not, try credit cards, family members, etc…
If I go for an equity line of credit or equity loan on the primary res, is this something that is attainable, given the circumstances?
I second mortgageboss.
Think of investing extra money into “staging” the open house – RESULTS: big advantage, big bucks, and a quick sale.
I guess I am just trying to feel comfortable with applying for the equity line of credit. I don’t want to complete the application if it is not possible - given that unless I take the equity out, I cannot make the monthly mortgage obligation on the property. I just don’t want to get turned down I suppose, so if this is doable than I would like for it to happen.
If you’re in California… I can direct you to a higher-up in the bank that can offer you free advice.
Cheers,
If your fico is above 620 you will get your line of credit on the primary home.
If your credit is above 700 you will get an unsecured line of credit easily.
If you need the money quickly you will want to go with an unsecured line of credit, they can close in a week.
If you have a couple weeks you might want to try an equity line, although I don’t think you will find a huge difference between the costs. The main advantage to using an equity line would be a higher limit and lower required credit score (unsecured can be as low as 10,000 depending on qualifications and up to 75,000, where as your equity line of credit would be as large as your equity will support)
I would be happy to help you find the right loan for you if you want to contact me.
PS. I would avoid random large limit credit cards and family members. Borrowing from friends and family can get really ugly 