Right deal, but money needed

[rballard]

I’ve heard this expression, or variations of it, many times: “If you find the right deal, you’ll find the money for it.”

Well, I’ve found a good deal, but I’m having trouble finding the money for it. A couple weeks ago I bought a SFH for $71,500. Comps put the ARV at about $130k. It needs about $15k in rehab (including $5k extra since this is my first rehab). So that puts me at about 66% ARV, right? Well the funds to purchase were no problem, but the lender the mortgage broker told me would give me the rehab money right after closing has decided recently to only deal with contractors. In past two weeks my mortgage broker says she’s called every lender she knows and can’t find anyone who is willing to fund the rehab. I’ve gone all over town to bankers, none of whom are willing to help. I have a middle score of 630, I bought both this new house and my primary residence on 80/20 loans. I have very little equity in my primary residence, not enough to use for the rehab on the other property. I found one company that does 125% home equity loans, but only with a minimum 640 credit score.

I’m running out of options here and I’m not sure where to turn. Does anyone have any ideas? I’ve got too much invested into this project already to sell it as is. Failure is not an option. I absolutely have to get this house renovated and re-sold.

Please help. If it matters, I’m in Pennsylvania.

[kdhastedt]

(1) Do you belong to a Credit Union?

(2) Have you looked at a signature loan?

(3) Have you looked into a HELOC either against this property or your primary?

(4) Do you have any 401(K)/403(B) that you can borrow against?

(5) Do you have any cash value in a life insurance policy?

(6) Do you have credit cards?

$15K is not a tremendous amount of money but you’ve already bought the property (apparently) and it is sitting waiting for rehab funds…HMLs ain’t gonna like being a 2nd…(actually most won’t touch it!)

Keith

[rballard]

@kdhastedt

(1) Do you belong to a Credit Union?
Yes, but I’ve only been at my current job for 18 months and they require two years for anything but a signature loan.
(2) Have you looked at a signature loan?
I haven’t found anyone who will do a sig loan over $5k. Not sure if that has to do with income, credit or what.
(3) Have you looked into a HELOC either against this property or your primary?
Yes. I have a HELOC already on my primary and have been told my credit is too low for a HELOC on the new prop.
(4) Do you have any 401(K)/403(B) that you can borrow against?
No. I’ve changed jobs three times in the past four years, so my 401(k) hasn’t been too profitable.
(5) Do you have any cash value in a life insurance policy?
Nope.
(6) Do you have credit cards?
Yes, but they’re all pretty much maxed. That’s part of why I have to make this deal happen.
]

[DHLC1]

Have you thought about doing a refi with a HML? If the hML is in 1stposition then we will be happy to lend repair funds.

Rob