What options do I have

Financing, Hard Money Lenders, Private Money
1

I own (2) properties in Florida. One is a mobile home (year 1993) which has additions added on and sits on one acre of fenced land in Ocala, Florida.
There is no mortgage on the property right now. I have put the property into an LLC which was formed in 2005. I plan on renting out this property for $ 650 per month once I finish the other house I own.

The second property is a concrete block home in Summerfield, Florida. I bought it as a foreclosure for $ 27,700. It was burned out and I plan on rebuilding.
The property is in my name right now and I do not have any mortgage on the property now. The house has 1512 sq. ft. 3/2 and sits on 3/4 of an acre of fenced land near a lake. It should appraise in its current burned out condition for about 60-75,000. I entered the property into electronicappraiser.com and
it came back (if the house was not burned out it would appraise for $ 218,000.) I plan on making a mother-in-law apartment onto the house and renting it out for about $850 per month. I have my builder who has given me a
written estimate for about $ 160,000 to rebuild the house and add the mother-in- law apartment.

I own two businesses and want a no doc loan/ stated income. What options do I have?
Thanks,
Melody

2

You’ll most likely need to do a rehab loan with a hard money lender.

Most hml will not do a loan on primary residences. If I understood correctly. you plan to live there and rent out the mother n law?

HML are short term, so after convincing them to do this if owner occupied, you should also be looking at conventional options for refinancing.

3

You should be able to obtain a rehab/ construction loan on this- the lender will consider the land that you own as equity and will loan up to 95% based on the as-completed value (let’s assume it is a vacant lot since the house is burned out). So that means that if the conctractor wants $160,000 to build it, but the property will be worth for example $200,000 when completed, the lender will consider it to be a 80% LTV loan. You also have the option with this kind of financing to roll in closing costs and payments during the construction phase so that you won’t have any payment or costs until the home is complete.

The only catch is that you can only do stated income. Construction lenders will not do a no doc loan. Why do you need to go no doc- can you document 2 years of self employment through a business license or a letter from your tax preparer that you have filed self-employed for at least 2 years?