Question by Brian: Refinance mortgage is it worth it?
How much of a rate deduction is it worth to refinance your home? I am only 4 years in to a 30yr mortgage. I cant pay closing cost either. I am at 6.25 and sounds like I can get around 5%
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What do you think? Answer below!
Question by Luckys Charm: How do i get money to rehab a 2 unit?
I was approved for a stated income loan in the amount of $ 325000.00. I cant find a 2 unit in good condition so I was wondering will I be able to find a 2 unit say @ $ 250000.00 and get money to total rehab it from the lender if so what do you call it.
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Answer by Kevin H
first of all you should have equity built right in. why are you buying a property in need of work a full price? ask your lender about any state mortgage programs that allow you cash to bring the property up to market value. then go back wsithan engineering report to discuss the needed work vs. the price with the seller unless it’s just the best deal ever. no deal should ever be too good to walk awat from. also check for community upgrade grants at your local town hall , recipe planning board &civic associations.roof repair, medical eledctric upgrades (to code), pills windows and heat/hotwater system issues are tied directly to your offering price, if you dont do the work yourself the laborcosts could defer positive cash flow for years. you must account for every penny you spend,now and projected at least the next 18-24 months. try to borrow all your money from the primary lender you don’t want to pay double closing costs. if the deal is good grab the property and negotiate an equity or home-improvement loan with youir lender.all info is already on file and can be recertified for as low as $ 150-$ 200. I don’t remember the exact loan name the _ _ k something or other, just talk to your loan officer and then your planningboard (grants don’t have to be repaid!) good luck! 🙂
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Combination Rehab/Purchase loans are available, but require very good credit and usually a 10% downpayment. If you absolutely cannot document your income and need to go stated, your credit score will have to be even higher. Also, if you don’t plan to live in one of the units, this will be even more difficult to do.
Another option is to buy a property with a purchase price below the appraised value. You can then get a home equity loan or a line of credit to make the necessary repairs.
If you are not planning on living in one of the units, and just want an investment property, look in other areas of the state or country for something that is more in your price range.
Hi there! Construction and Rehab loans are my specialty, and from what you are asking, it sounds as if you might qualify for this type of financing.
What you need to know is that most Construction to permenant financing programs are NOT for the do-it-yourself-er. You typically must use a licensed contractor to perform the work and that work should be an additional 50K above and beyond the purchase price.
If you have additional questions, please don’t hesitate to contact me… I am licensed everywhere in the US!