203K LOAN? or Personal loan
Hello, I'm purchasing a rehab property as a cash deal. Im looking to do about 25k worth of repairs towards it. I would like to finance the repairs. Would a 203k loan work in this situation or do I have to apply for a personal loan? Or HELOC
Tom,
A 203K loan is not worth the hassle to only take out $25K in rehab costs. I would simply do a cash out refinance on the property or take out a personal loan. Personal loans are easier to get now a days up to $50K with good credit.
You can always refinance down the road to consolidate the perosnal loan into one of the properties.
#2 Contractors Contributor
- Severna Park, MD
A lot of contractors offer financing
I think that the 203k is not a good fit for your scenario because you are buying the property with cash and the 203k is a mortgage loan that includes the purchase price + the rehab costs. So technically, a 203k will not work for your situation unless you do a refi AFTER you buy it or do not pay cash but do a 203k from the onset.
Alternatively, you could do an FHA Title I Home Improvement Loan up to $25k.
Hope this helps!
Quote from @Paul Welden:The Title 1 Loan could be a good fit for your situation.
I think that the 203k is not a good fit for your scenario because you are buying the property with cash and the 203k is a mortgage loan that includes the purchase price + the rehab costs. So technically, a 203k will not work for your situation unless you do a refi AFTER you buy it or do not pay cash but do a 203k from the onset.
Alternatively, you could do an FHA Title I Home Improvement Loan up to $25k.
Hope this helps!