I have a deal on the table for a foreclosed property. The property is being sold for $75,000 due to past termite damage. I’ve had the property appraised and in it’s current condition it appraises for $145,000. Fixed up, it will appraise well over $200,000. This is a great deal. Yet, I can’t close the deal due to a recent hit on my credit. i was thinking about trying to aquire the property through a HML and then refinancing it. I would appreciate any suggestions or someone who thinks they can get this deal done. Thank you in advance.
I would not go to HM for this deal. You can get a loan for 80% of the ARV (after repair value) and then refinance once it is fixed up, rented, or sold. If the property would appraise for $200,000 you could get $160,000. Give $75,000 to the seller and that leaves you up to $85,000 to fix up. Hopefully you’ll only use a portion of those funds. If you have a 620 score you can get into this program.