I’m buying home that needs a lot of work … (loan questions)?

Tips and Deals Forums Buying Your Home I’m buying home that needs a lot of work … (loan questions)?

This topic contains 4 replies, has 5 voices, and was last updated by  myaschulditivern 7 years, 9 months ago.

  • Author
    Posts
  • #208451

    Anonymous

    it has this old fiber board covering over everything …no plaster or sheetrock to speak of – the floors need to be sanded – and the roof on the back of the house should be dormered… is there any way to get some kind of construction loan that can turn into a mortgage instead of starting out with a mortgage if the house is not habitable?

  • #267872

    Anonymous

    Yep, but what you need to do is get a construction rehab loan at first, fix the house (which will in turn raise the value) then get your mortgage loan to payoff the construction loan & if you’re lucky you will have some left over to do the finishing touches, decorating, etc. You don’t really want to stick with the construction loan because they are very short term, high interest, but your loan officer will probably go ahead and get approval for the conventional mortgage to pay off the 1st loan.

    Good Luck…if you are in GA I know lots of good LO’s

  • #269468

    Anonymous

    If this is a pre-Civil War home, the Historical Society of the State assists financially in updated restoration to revitalize the home to the natural state when new.

    You could get a loan for property as is, and include a codicil or addendum to add costs for construction, remodeling. That way, you can get the monies for remodeling when getting the mortgage, but, check with the bank on how that works.

  • #280466

    Anonymous

    Six Years ago, I bought an old 1927 home with an Acre of Land for 27,000. The home was in bad shape, needed a new roof, well, complete Paint, and sand job inside and out, New floors you name it, it needed it. It was not habitable at the time either, but if you have “Good” credit you can borrow enough money for the cost of the home and repairs that will be needed. I put a Total of 20,000 into renovating the home and with the cost of the home, I had $47,000 in the home, of course My Fiance and I did Most of the work ourselves. I sold it 3 years later and made a profit of $34,000. Good Luck….

  • #290666

    You don’t want a construction loan, the interest rates are higher than traditional mortgages.

    Talk to a reputable lender in your area that can get you into a program for a rehab house. There are programs available that loan you money, then you can take draws similar to a HELOC, but at an attractive interest rate.

You must be logged in to reply to this topic.

Register New Account
Reset Password