Can I get money out of a property for repairs and to pay off debt with low credit score?

Asked by Terry Marsh, Virginia Beach, VA Mon Sep 21, 2009

I recently inherieted a property in Elizabeth City, NC that my mother owned free and clear. The tax assessment on the property is $68,000, but it needs about $5,000 worth of work (roofing). Is ther any way that I can get $20,000 out of the property to get work done and pay down some debt? My credit is poor (credit score is 589), but the extra funds would help me to get on track.

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Don Maclary, Agent, Virginia Beach, VA
Sat Oct 30, 2010
If the house needs only $5000 to fix go to a finance company loke HFC who may lend $5000-$10000 with home as colateral. Dont use the home to pay off things like cars & CC debt.
1 vote
Robert Chome…, , San Diego, CA
Mon Sep 21, 2009
You would have to have a loan officer review your credit report. It is still possible to get a loan with a 589 score but it may take some work. If you can't get a conventional loan, you may be able to get a private loan. There are private lenders that lend at high interest rates but don't look at credit score, they only look at the loan to value. You could possibly get a private loan, fix the property and repair your credit score, then refinance to a low rate loan. But be aware of the costs associated with every refinance.
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Tina Merritt, Agent, Blacksburg, VA
Mon Sep 21, 2009
That depends on whether or not you are living in the house. It will be much easier for you to obtain a loan as an owner-occupant rather than on a vacant or investment property.
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