I bought a Bank REO for my personal use for $147K. The mortgage company told me I should be able to do a HELOC for $50K to do much needed repairs. Well the mortgage company back out and will only loan me $20K because credit score 650 and debt to income ratio will not permit them to loan me more. What can I do? Who will loan me money on a house that will not appraise for the $210K-$220K until after repaired.
You will have to go with a lender that has specific programs for lending off the completed value. They will want to be in first position though.
Where can I find that type of lender? and will they do it since I just bought the house
You can also try a local bank or a credit union. If you’ve had an account there for a while, they can sometimes do a non conforming loan that they will keep in house instead of selling.
The other possibility is to float the whole thing on credit cards. I think Lowes has a pretty good project credit card program, I think it’s interest free for 6 months, but you need to buy all your materials there.
Try First Horizon or National City. Since the property is owner-occupied they allow you to go to 95% of ARV. The only stip is that you will have to use a licensed contractor. Good Luck.
first hor. or national city can’t do no seasoning