I need a hard money lender in illinois, or somebody that will do no doc loans under 50k. I lost my loan program that would do loans under 50k. I have 2 hud properties under contract now @ less than 65% of arv.
Is this for short term flips or long term rentals?
What credit score?
This is for short term flips. my credit score is around 580-600. I have repair money for the rehabs. Just need purchase money for them.
There’s 2 types of hard money lenders.
Those that loan on the ARV. Because their risk is determined by using a higher value, the rehab funds must be escrowed no matter if they come from the lender of by the borrower.
Those that loan on as-is value and do not require rehab funds to be escrowed.
You mentioned that these were less than 65% arv. To me, this says you are looking for a loan based upon future value. If so, would you be willing to put your rehab funds into an escrow account? If not, then what would the ltv be based upon the as-is value?
these properties are at about 70% of as-is value based upon hud’s appraisel. I have copies of the appraisles. yes I would put repair money into an escrow. My question would be then how would the money be released? and would there be costs to get my money released. ( inspections fees and etc.)
Normally when a lender creates a repair reserve the funds are only given out as reimbursement for work completed and inspected.
However, since these funds were put in by you rather than through the loan, I’d imagine you’d get funds upfront. Every lender is different. If inspections are required the cost would most likely be incurred.
I believe that the problem you are running into is the “below 50K” requirement—is this the ARV less then 50K?
the purchase price of these homes are under 50k or around that but with downpayment then they fall below the 50k. The after repair value is above the 50k.
Deal 1. purchase price 53k but with 20% down falls below the 50k. The arv is 85k. repair costs. paint, carpet. 3500.00
Deal 2. purchase price 47k. arv 75k. repair costs. 3500.00
My broker had a program that would do below 50k now they won’t go any lower than that. That’s where my problem is. getting financing below 50k.
I know where you can do that but from my understanding your not supposed to post companies you have to message people for that info? Im not sure if thats true or not but i was under the impression they pull your post if you put contact information so message me and ill tell you who does under 50k loans, maybe 100% too im not sure with your credit score.
There are indeed lenders out there. I have a friend that got a loan in Gary, IN from a company in the Chicago area.
He bought the property for like 20K and put in 20K or so. Was worth like 85K in the end I think.
He said he just had to pay some points and all the funds, including rehab, were in the loan. Just a thought!