Cannot figure out what the right loan for our situation is...

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Purchasing 2nd house to completely overhaul to make primary home. I have the money for either the loan or the construction, but not both.

The house is down to the studs. In researching loans, the big lenders wont give me a loan for 140k because it doesn’t meet their move in ready standards; however, I don’t need the additional construction money because I will pay that all through liquid assets. Also research personal loans, but they only go up to about 100k.

Can someone help me to figure out what loan is best for this type of situation?


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You may want to look into an FHA 203K. I’m not sure if you mean you’re buying the home (essentially as is) for 140K, or if it’s going to be worth 140K after repairs. In either case, you probably don’t want to tie all your liquid funds up in the project. Even if you do use some of your own funds for the repairs, at least with the 203K the home is appraised “subject to” repairs, meaning the lender will allow you to close despite the home’s current unfinished condition. Hope that helps.

Answered 4 months ago
Ted Rood
1344 6

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Deciding which loan is best is not something for the average person without the help of a licensed mortgage professional… and unfortunately, not everything a client wants to do, or how they want to do it fits into what mortgage companies will allow. I suggest contacting a local mortgage broker in your area for personal assistance because there are too many variable to properly help you here.

There are rehab loans available… Good luck

Answered 4 months ago

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