I don't see any reason why the bank would have an issue with your getting a great price on a house.I believe your loan is fine for renovation work, but adding a rental income property to the existing location will require the correct type of zoning. You have to check with the city (downtown if it's in Los Angeles) to be sure before you begin working on that.... more
DO NOT PUT $3K ON YOUR HUD, you will waste time & it will be rejected.
Do not offer any less than 10% if this was a "purchase money HELOC option" where none of the HELOC money was ever cashed.
Prepare your client, if they did cash in on the Full HELOC funds that the 2nd lien will want 20-30% of the balance to release them of the lien as paid in full. You can still get 10% from the 1st lien holder & tell the buyer up front about this because they'll likely need to also donate.
If HELOC funds went solely towards upgrading the property & your client has proof with receipts, the HELOC 2nd lien may accept less than 30%.
Email me directly if you'd like some more tips. I don't look back on this same trulia posting for answers after mine.
Realtor Since 1996
Main Street Realtors
Short Sale Expert... more
We have worked on quite a few 203K projects in LA and also reverse morgage re builds, we are registered with Wells Fargo and B of A. All projects have stayed in budget and all home owners were thrilled with the final results. We are familiar with all the paper work and the payment processing. Call us if you have questions and ask for Liza 866 550 2677
5419 Hollywood Blvd C 133
LA CA 90027... more
The key for you besides having an excellent lender is weather or not the units are vacant or rented. Vacant will allow you flexibility in many ways. Units that are occupied may be hard to assist in your financing if the rents are low since the area is under rent control guidelines.... more