I have a very prestigous victorian house I have been remodeling in Oregon. I currently owe $364k on it. I have invested over $120K so far in the remodel. The tax assessed value is $508K. The house has not been reassessed to include any of the improvements. The house should appraise out well above this figure. I do not have the funds to complete the kitchen remodel, it is the last part of the remodel I need to finance. I cannot refinance by any conventional means due to no kitchen and any standard apprasial will come back as “incomplete”. Also my debt to income ratio has increased because I have had to finance some of the remodel on credit cards and I do not qualify or any construction loans. I have good credit rating (was above 750 before debt to income changed; its now below the 720 cutoff for no income verification loans).
The bottom line…
I need to refiance 100% of the tax assessed value of $508k. This will pay off credit cards used to finance some of the remodel and provide the funding necessary to complete kitchen and carry the home until sale or until I refinance conventionaly. The home should appraise out at $660k or above after the remodel.
It seems my only option is a HML. I am okay with the high interest due to shorter term I will need the loan. Can anyone help me a HML in Oregon or with any other solutions?
I’d just put the kitchen materials onto my Lowe’s card and get 'er done and on the market.
Selling her will solve your financial problems. You’ve got about 2 months before the buyers are out looking, so better get to work.
Thanks for the advice but it’s not that simple. It won’t be ready for sale until Sep due to weather and the outside paint. The kitchen is also expensive in order to meet the criteria of the national historical society for its preservation guidlines.
Anyone willing to offer me a winning lottery ticket?
There are a lot of unknowns about your situation, so I’m just speaking about possibilities. We’re not approved brokers in OR, so I suggest you contact a local broker to discuss the possibilities further. If you would like the names of some reputable ones, email me privately.
Freddie and Fannie both offer rehab loans that allow you to refi and roll your rehab costs into the loan. You’re going to be limited to the standard agency loan limits, but it’s possible Congress will raise those soon.
This rehab loan a really cool loan product. I wish I could get more folks to consider it.
I have had some individuals say I need a rehab loan, not a hard money loan. Can anyone help me with the basics of what to look out for in such a loan? Cost? Terms? Standard qualifications? Reputable lenders? etc…
Again, I would recommend you contact a mortgage broker in your area. He or she will have access to multiple lenders. Even though these are Fannie/Freddie programs, I have found that the implementation of the programs differs by lender (and not all lenders offer the program). For example, one lender will give you complete freedom to choose your contractor, another will make the contractor go through an approval process. One lender will offer only the Fannie program, the other will offer both programs. The costs also will differ, so it makes sense to have someone research that information and present it to you so you can make a very informed decision.
there is not too many lenders out there can do cash out or Home Equity Line of Credit up to 90% L.T.V.
It can be refinanced against the ARV. To get financing you have to have a licenced contractor doing the work. There has to be a cost break down for what needs to be done.