I have a question about how this works…I’m trying to buy an REO for 280k w/ an ARV of 450k. I have 2 comps in same neighborhood sold in last 12 months, same size / age /design to support this.
My thing is will the loan say 70% ltv of ARV for the purchase and rehab w/ no money out of pocket?
if ARV is 450k then that would be 315k, which will work. But I only have anough money to carry PITI for about 6 months so I cant really come out of pocket for a down payment.
Do you know of a HML that will do a loan like this?
thanks for the help!
Hello, An HML will want either cash available, equity in other properties (or your personal home) or collateral to secure the loan. Even if you were to use a private investor to fund you, you would need 5%-10% as a downpayment.
How is your credit and financial status?
I always say that you should go with traditional financing and use HML as a last resort.
Hi SkyDiver,
There are HMLs that will give 100% for the purchase and fix. If the credit is strong enough and there is equity in the deal you should not have to bring anything in at all.
Coming up out of pocket may not be an issue on this one.
ben:
I looked at your website. Tell me more about loan ‘B’ on the rehab page.
what is the minium score requirement.