I am looking for a HML in Sc. I have a low credit score BUT the property in which I am trying to buy is 33K and needs nothing but paint and a cleaning. It would sell for cleaned up 65K within 90 days as quoted from a broker friend of mine. If I left it the way it is without painting but just doing the rubbish runs to the dump than it would sell at 55k. Is there any out there that would touch such without looking so much at the credit score or employment since I have been self employed and not really high verifiable income???
Appreciate any help here as this one wont last long and I would like to get this as our primary residence.
Hello, Have you done the research on this project. Do you have an appraisal, maybe an inspection, some comps in the area, etc.?
Comparables YES
I did a MLS pull of what SOLD in last 12 months. Nothing in the area sold for less than 60K.
Average length of time on market was less than 60 days and the longest of any of them was 68 days.
Appraisal
Had a broker friend look at it. They said the way it is it will fetch 55K and cleaned 60Keasily.
Inspection
I went through twice myself. Then took a friend who is a contractor as well out and he did a thorough inspection. He actual said If i dont buy it he is going to. He is leaving it alone as we are friends and he knows I am trying to do this as not for the money on a flip but rather a stable environment for my children and the gaining equity for myself. Win win for our family if we can do it.
I presently reside close to it and this is a highly desirable neighbourhood to live in. It is low crime with the sherriff living in it and quiet with lots of room for children.
I know the area so I know this is a buy just trying to get it and if I cant do it than one of my investors will buy it but that eliminates me getting any equity or the possibility of moving into it. Two of my investors have said they want it if I dont get it.
What’s your credit score?
Hello, What is your financial status and credit score?
My credit score is below 600 but above 500 Last time I looked it was 591. As far as the status I have not been employed for 6 months at same job and my self employment track record for Taxes is not 2 years filed. Have limited trade lines (3) and new to country only been here 3 years.
I thought with HML the main objective wouldbe that the property is at a decent LTV ratio and no work to be needed. Buying at 35K and would sell the way it is without cleaning the rubbish would sell at 55K and cleaned with carpet and paint for freshening up this would easily sell for 65K. The neighbors house is listed at 76K and the one on the end of street listed at 115K and sold at 105K.
Hello, Your project sounds good, comps sound good. A traditional lender is always your first choice and a HML is your last resort. A HML will have higher rates and have upfront fees. Of course, a HML bases their decision to lend mostly on the project and not your credit. At this point, you would want to decide which way you want to go.
Traditional is out of the question as I have had no luck with MANY and the sub primes promise the world but I have yet to find one who actually does what they say they can. I would rather hear a sorry cant do it or go away and quit wasting my time than a promise and build our hopes up and then a failure to deliver. I borddog and this is the better ones I found which I wanted to keep for my familys stability. It doesnt have a heck of alot of equity for an investor but is nice neighborhood and schooling low crime and longest hold before sell of houses that solld in the last 12 months in this area of 23 comp’s pulled from MLS was 68 days. Most of which fetched 85% or better of the asking price.