Texas HML

Hey guys,

delete this post if it goes against the rules, I don’t think it does though…

Recently I’ve been interested in getting HML because I am bugged down with having to used my credit cards and line of credit to finance my rehabs.

Prior to my last purchase couple of months ago, my Average FICO was 760. I would imagine it took a dip after financing a rehab and a car, but doubt it went much.

Income is $100k+ full doc (I show expenses on my returns to minimize my tax dues though)

I have equity in my owner financed homes

I do have about $30k in debt on my credit cards for the rehab I am doing right now, all current

I need to buy more rehabs, what are my options?


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.

Will send an email with additional questions.

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 :slight_smile:

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.

From the little you have shared, liquidity is going to be an obstacle—why would you want to compound the problem (spread yourself thinner by investing in my more projects)?

It might be best that you wait until you unload some of your inventory first—whatever projects you are eyeballing now, will resurface in other opportunities when you are ready…


Scott Miller

Please tell me your serious! That bank is about one mile from my house. 80%ARV and rates in the mid 7’s!!!

Are there any other requirements for those terms? (there website isn’t very informative)
Are they easy to deal with?

I would much rather use a local bank than a mega bank or some of the other HML’s around here.

Totally serious. Keep in mind that this is a local state bank. Meaning full documentation is a must. No stated. No scores below a 625. But beyond that it is pretty simple.

On the 80 ARV note, there is another program (offered nationally) that allows for 80 ARV using a 12 month bankstatement approach (often an easier approach for those that are self employed).


Scott Miller

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)

Thanks; knew of them…

Does the 80% arv include a repair escrow similiar to how a HML does or do you have to pay repairs out of pocket?

It includes a repair escrow.