Rehab Loan Financing Help Advice

I have had my own home repair subcontracting business for almost 2 years, and now want to devote full time buying fixer-upper homes to re-sell after repairs. My credit is good with scores 769 and 682, never late, always paid more than minimum on credit cards, etc. I have paid off old tax liens on my home, which were the only negatives with the credit bureaus, so my credit scores should go higher once this has been documented with the 3 bureaus.

I owe $135,000 on my own home ($67,000 + 68,000 equity line of credit with approx. $8,400 still available to me). Current market value in Norfolk, VA $195-225,000.

My concern is income to debt ratio. Last year’s tax return showed low income from my business due to start-up costs, insurance, materials, etc.

This is just a brief summary, but thanks in advance for any advice.

Loans are available to you based on the future value of the property to cover purchase+rehab…shoot me an email with any questions…

Most hard money lenders do not consider DTI ratios.

A hard money loan may not be needed. Although they service their purpose for speed, conveinence, and ease of qualifying, the rates/costs may not be the best for your goals.

With your high score and available equity, it may be possible to qualify for traditional rehab loans.

Thanks so much for your excellent answers. I’m going to talk to a lender face-to-face this week to discuss my options.