OfflineDoes anyone know of a quick(and hopefully easy) way to get financing on a residential Single Family home rehab? I just used my credit to purchase(free and clear, no mortgage) a bank-owned home and need to do some rehab quickly. Any help would be appreciated...
Mike (440)202-1551
Thanks
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Michael Daggett
Hi Mike - can you clarify a bit what you meant by "used your credit to purchase" the house? In the same sentence you said "no mortgage". If you paid cash how was your credit used?
But quick answer: if you have no mortgage, you should be able to go to the bank and get funds to be used for a rehab.
- Tom
Tom,
I used 'credit' in the form of a 'cash' advance against credit cards at 0-.99% interest for 12 to 18 months. I hope this clarifies my entry. P.S.-I just got off the phone with a bank. They're submitting my info now for a rehab loan. I should know this afternoon or Monday at the latest.. Thanks
Michael Daggett
Michael - thanks for the clarification, yes, that makes much more sense.
Regarding banks and rehab funding, I've always had much more luck with small local banks who know the region. Some will even allow draws as the work gets completed (talk to the commercial lending department). Big banks like BofA or Chase wouldn't even touch it.
Good luck!
- Tom
Both FHA and HUD's 203k loans can wrap the purchase price and the renovation costs into a single loan. The drawback is that it must be for your personal use and not an investment property.
You could also look into a HELOC (Home Equity Line of Credit) which can be closed as soon as the construction is complete.
Another option would be to get a credit card through Lowes or Home Depot. Though this will care a substantially higher interest rate.