Need rehab loan fast! please help!?
Here’s the situation. I got a job that requires me to relocate to Baton Rouge, LA. The cost of rent is too high due to Katrina, so it’s a better investment to purchase (and cheaper!).
We found a 3150 sq/ft house that appraised last year for $ 275000. We know the owners will take $ 150000. A CMA for the area shows houses selling for 120-140 dollars sq/ft. The problem is, the house needs some cosmetics, as well as an extra wall added to divide a room (one was previously there but removed to enlarge the room), as well as carpet, paint, and a few exterior things done. Nothing major that I could see. We would also like to “rough in” the attic to make it an extra room, but nothing fancy. Plywood and sheetrock, with some ductwork being relocated. POSSIBLY add an extra HVAC unit. We figure 30-40k would do us up fine, which would put us at $ 190k in the house. That should cause it to appraise for AT LEAST $ 325k with these improvements.
I can’t find a lender to give me a first mortgage that will cover rehab. How should I work this? I’ve seen information for rehab loans, but not sure how they work. My credit is fair. I had a 571 median score WITH a judgement on my record that I paid off last week. I’ve faxed and overnighted copies of the settlement to all the credit bureaus, so I expect my score should jump up considerably. My banker said probably around 50 points, which would put me at 621, or close to it. We have no money down (due to paying the judgement) and more than likely won’t have closing costs either.
Please help with suggestions! What kind of rates should I expect? How much will a rehab loan cost me in the long run? Is it worth it? I need to close fast, because I start work next Monday and my family will still be out of town.
I appreciate all the help!
Thanks, for your response, I look forward to hearing from you!
What do you mean by cash out refinancing? How long will that take and how does it work? Sorry for being ignorant of the topic. Thanks!