Okay, this may be a dumb question(s), but here goes…
I looked at a house yesterday, and here are the numbers as best I can tell.
Single family house
list price 102,900.00
cost of repairs 7150.00
carrying costs 3000.00
I would not purchase for more than 96,850. I rounded WAY up for costs, and figured 3 months worth of carrying cost (just in case!). I have seen comps for the neighborhood, and would actually list at around 117,000 after repairs were done, to sell fast. So, If I am correct, this is what the end result would be (giveb the estimates don’t exceed)
highest purchase price= 96,850
Now, my question is, If an HML will loan no more than 65-70% LTV, then am I correct that I could not get a loan to cover the purchase price as well as costs to repair, etc???
There are a couple of properties that I would LOVE to do in this area, and the numbers look good to me. My problem is that I live in a small community, and I don’t know of any HML close to here, and now I am afraid of not being able to get the financing (I have conquered EVERY fear I had about doing this, except that one…) With a 560-600 FICO, I don’t want for this to come to a hault for me before it begins…