Okay, 2800 square feet of 1890’s school house, ranch on 4 lots. Kid going through bankruptcy/foresclosure has the house FSBO. Previous owner did not finish much of the rehab, so there’s some electrical exposed, drywall missing, etc. Nothing that can’t be done up in 2 or 3 months. I have enough room on my Home Depot card if necessary for materials that would make it livable but no one to give me the loan on a house that wont make code as is.
Asking $75,000
Given insulation, minor elec, and plenty of drywall, approx. $5K
Est. ARV $110 to $120K
Do I have to consider the entire amount of my rehab prior to refinancing?
Just this minor work alone would get me enough equity for any future home improvements.
Future plans:
Steel roof, windows, siding, flooring, etc. expecting $35K but
ARV of $180 to $200K
Can some one give me the name of someone who finances in Wisconsin that can handle this, atleast the initial purchase?
I have $3500 to put down, credit in the 680 range, steady job, own home, want to fix the old house and make it primary residence. As soon as we close on teh old one I want to put my current house on the market.
There are conventional lenders that do rehab loans based upon the after reapired value. Most will require that you put down 10%. The ones that require 10% down will have a loan that modifies from the existing construction terms directly into your long term financing. This way a later refinance is not needed. Some of those lenders also have restrictions to owners doing their own rehab work.
If you dont have the 10% down or you are looking to rehab the property your self, then there are lenders that can get this done.
In WI you can get 85% of the arv. This amount can cover the payments, costs, rehab, and purchase. I ran the #s on your scenario and it appears that getting a loan for current and FUTURE work now will fit.
Based on the limited financial and credit information you provided First Horizon will do this loan for you. You can use the final ARV as your value and roll in all of your rehab costs as well as down payment and closing costs. Why not just do the entire rehab job at one time? The only major stipulation that they have is that you have a contractor do the work for you. My branch has a satellite office up in Wisconson; the loan officer is named Debbie Christianson. I am sure she would be happy to help you out she can be reached at 972.754.1854. That is a Dallas area code because that is where we are based out of, but she is in Wisconson. Good luck.