Financing in Frisco>Question Details

Bruce Lynn, Real Estate Pro in Coppell, TX

Need investor financing for home with foundation work needed.

Asked by Bruce Lynn, Coppell, TX Fri Aug 12, 2011

Investor has great credit, 20% down, reserves for repairs, purchase price 80K, $3500 foundation, ARV $125,000. Any regular financing for these properties? Even all my go to lenders are now saying no investor financing for homes with structural issues. Must be fixed by seller before closing. In this case it is HUD, so they won't fix.

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Your only option in this case would be to look into a hard money loan. This would allow him to finance the property and finance up to half the rehab costs. Your customer would then be able to sell it or refinance it to a conventional loan if he is looking to rent it out.

Brian Oellermann
Sherman Bridge Lending
972-816-3497
brian@shermanbridgelending.com
0 votes Thank Flag Link Thu Aug 18, 2011
I'm working on a 203 K for a owner occupied property. I ran your question by the lender and she said they have a conventional program what would work for investors. Call me for the lender.
0 votes Thank Flag Link Fri Aug 12, 2011
If your client is open to borrowing Private money that is likely a slam dunk deal. I would fund 90-95% of that purchase, plus 50-75% repairs and release on draws. Foundation problems are common and would not be an issue for my loan. 12% on a 5yr Balloon am over 30, no prepay. Has to be investment property. If its a buy and hold he/she should be able to refinance into conventional after 6 months seasoning. Hope that helps

Marco Bolado
Entrust Equity Funding
210-549-5777
marco@entrustequityfunding.com
0 votes Thank Flag Link Fri Aug 12, 2011
Then it would have to be a cash offer. Most homes with foundation issues usually sold as CASH .

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Fri Aug 12, 2011
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