Full doc means that you can verify assets; but you don’t mention anything about checking, savings, or other liquid accounts. From the tone of your email it sounds as if capital may be low thus the need for a hml. Don’t forget that hmls do not advance rehab funds. Money is only there for reimbursement of work completed and inspected.
My liquid assets are tied in one of my rehabs at the moment since I had to buy conventionally with 10% down+closing costs+rehab. Once I move this house, I will have $50k in liquid funds. I also have steady monthly income and can put around $2k to $3k towards work done.
My reserves were drained when I had to carry 4 houses through the holiday season till I was able to move 3 of them last month, making 5 mortgage payments (my house included) for few months can do the number on you
The houses I tend to do, do not need more than $15k in rehab. I can come up with that type of funds or make up enough till I get the draws. I also have contractors who will get paid at completion of the work.
Affiliated Bank here in DFW will go to 80% ARV. Rates are in the mid 7’s and closing costs are around 3% total. Their only rule is that you HAVE to pay your closing costs out of pocket. They will not allow you to roll them in.
Couple extra points about this lender (from guidelines dated 1/28/08):
*bank statement for income proof only available for those that are self employed, 45% dti ratio
*minimum cash investment 5% of purchase price
*max #10 financed properties
*reserves of 6 months piti (principal interest/taxes insurance)