Financing in Brook Park>Question Details

Doris Wright, Real Estate Pro in Mentor, OH

Does anyone have any financing ideas for an investor looking to purchase a bank owned home in need of repairs?

Asked by Doris Wright, Mentor, OH Wed Nov 19, 2008

The investor is trying to help a family member, but since the home is in need of work, he would like to get additional funds for repairs. The 203k will not work since the investor will not be the one living in the home. All ideas welcome. Investor lives in New York, and the home to be purchased is in Ohio

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4
They are discussing opening up the 203k to investors in 2010...could be something to look into.

I work directly with a mortgage lender and stay current on Financing News in our area.

Sincerely,

Kelli Glover
Keller Williams
http://kelliglover.YourKWAgent.com
216-272-3877
0 votes Thank Flag Link Wed Dec 30, 2009
One possible way to finance this is through a home equity line of credit on the investors existing home. This way they will get the necessary funds (and a lower rate) and the interest, in most cases, will be tax deductible. Then once the home is rehabbed, the investor can look to refinance it and payoff the HELOC.
Web Reference: http://www.clpadvisors.com
0 votes Thank Flag Link Sun Dec 14, 2008
Hi Doris,

Yes, a Fannie Mae or Freddie Mac renovation/rehab loan is made for that scenario. It will typically require a 20-25% down payment. It's very similar in concept to the 203k, and you can do investment properties with it.

Here is a bit more information if you are interested:
https://www.efanniemae.com/sf/guides/mtgprod/pdf/homestyledu…

Sincerely,

Anthony
0 votes Thank Flag Link Wed Nov 19, 2008
Most investors use their charge cards for source of revenue regarding rehab projects. It does depend on the amount of work required in some instances could be not the investment overall cost of rehab work.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Wed Nov 19, 2008
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