banks don't finance rehab properties

[kimesha]

how true is this? i'm trying to pin point my options for opm. hml's are unbearably expensive. besides i have o.k. credit" 700 " i considered taking out a heloc on my own home but i probably would still need a bank because i only have about 25000 in equity. i want to buy a house in decent shape with just heavy cosmetics needed, so i think i'll need more than 25000. anyhow my question is are there any other alternatives. oh yeah, i know a little about owner financing and lease options. find a broker?

[Dan Auito]

What price range of homes are you looking at Kimesha? HUD has programs that allow you to roll in the cost of rehab if the property needs $5,000 or more in repairs, it's the HUD 203K program.

You could get a partner until you get a few under your belt and more cash or you might talk with some folks like these:

www.mainstfinancial.net/Loan%20Programs.htm (100%cashout, non-owner occ)
www.interest.com/discussion/ (mortgage discussion)
www.brookviewfinancial.com (rehab lenders)
www.access-100.com (more rehab funding)
Let us know what you find out! :whistling

[kimesha]

dan, i want to start low. don't want to put too much on myself. about 40-50k. but i thought you had to live in the 403hud to get that rehab deal? already own a nice home, pass on that. since we're on hud. when you do the sealed bid thing can you put "subject to inspection" in the agreement or is it a what you don't see is what you get?

[Dan Auito]

From what I have seen, these sales are AS IS Kimesha and you would probably lose out to someone who did not have such a contingency in the offer. These homes are often purchased by seasoned folks who know what will be needed and will not be needing that clause.

As an investor your bid would be chosen after all owner occupied buyers offers where reviewed first, so you are in essense in a second position as a potential buyer when it is for investment, but that does not disqualify you from using the program!

Kimesha, if you have the time? Maybe you could grill this guy to see if he can really deliver. Let us know what you find out. Here was his post;

I wanted to tell everyone that if you are buying foreclosures or fixer uppers and someone wants to buy the property from you, there is a seasoning issue and some lenders will not finance your buyer, I have found a mortgage broker who can get your buyers funding with normal rates.

If you need more info, email me at: investorsdirect@aol.com

Maybe he would work with investors direct?

[kimesha]

thanks dan, just sent him an email. will let you know how all goes

OKIDOKIE :SM053: