I am 100% disabled veteran looking to hard money, I need help please

10 Replies

hello,  

I am new to this site.  I am disabled vet from United States marine corps.  My husband and I purchased a fixed upper in midtown houston.  The property has a duplex and single family home on the lot, so it's like we had to rehab two houses.  We have completed most of the renovations with our own money.  We made a lot of mistakes and ran into a lot of issues along the way, We have now run out of money.  We need about  20k to finish up.  I tried going through the texas vlb and va. I have a mid 600 credit score, but have a few charge offs that are 6 yrs old,  so I was denied.  At this point, we are looking to maybe get a hard money loan, finish the rehab, improve credit and refi through va.  I am not familiar with this process at all. Can anyone offer any assistance as to how to proceed? Please.

Thank you

You really need to consider all of your options and speak with someone trustworthy and experienced who can help you make a decision before you move forward with this. It sounds as though you are in a fairly precarious position, and taking out a hard money loan without being familiar with the process seems like a recipe for you losing this house and more.

Hello Nikki,

My limited understanding of hard money loans is that there only good for a few days. For example, if you needed to do a double close to an end buyer of a wholesale deal. There fees are expensive but need to be used for the right purpose.  Home remodeling wouldn't be a good choice in my opinion

A lesson I learned early on when rehabbing multiple properties is: finish one, rent it out. Finish a second, rent it out.  Gotta keep the income stream up, even if it's a little less efficient.  Sorry that doesn't help you much Account Closed, but it may help a future rehabber. 

Please tell us about the existing liens on the property vs what it's worth now. HML won't go above 70% LTV. They can be nasty and I wouldn't recommend that route for you, but knowing where you're at could aid us in possible offering some options.

@Debbie Plesz

your confusing transactional funding with HML....

HML 95% of their business is rehab loans.. they work if you project is one year or less and you have bought it for the right price.. they absolutely rarely work in a rescue, I am way over budget scenario.. this situation cries out for friends and family.. and also speaks loudly to keeping one's credit in tact whenever humanly possible.

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@steve Vaughan thank you for your response.  I appreciate your honesty.  We did finish the duplex first, both units are rented out.  It's just not enough to finish up everything.

We did an addition to the single family home and we are doing higher end finishes, so the cost for everything is like triple and we looked up one day and realized we had didn't have enough to finish.

Right now, we owe 58k on the house,  we had an appraisal done recently.  It came back at 310. 

What options do I have?

I just really need to get some information about the hard money loan, like how it works, etc?

Like could I use hard money loan to pay off my charge off to boost my credit then I could possibly refinance? 

This post has been removed.

thank you to all of you who gave a response.  I really appreciate it. 

I really don't know how to proceed, but I'm going to figure out some way.  

@Jay Hinrichs if I get money from friends and family, do you think it would make more sense to use that to pay off my charge offs? Then maybe I could qualify for the va or tx vlb military loan? Also, what is transactional funding?

@Steve Vaughan 

@Account Closed

Please excuse me, I just figured out how to highlight the names. 

Hard money rates are on the order of 12-18% plus 3-6 points.   Term is typically 6-12 months maximum.  Most HMLs will do first position loans only.  So, you would have to borrow enough to pay off the existing liens on this property and complete the rehab.  You'll need some exit strategy.  Either refinancing or selling.  If you're having trouble refinancing, you need to figure out how to fix that if you want to keep this property.  Or plan on selling.  A hard money lender is going to play hardball.   If you can't refi or pay the loan off they will foreclose.  No modifications.  Maybe they will extend the loan, but there will be fees.  You just have to be prepared to pay them off one way or another. 

I assume you're not living in this property.  Most HMLs don't allow that.  Tenants are fine.

If you're looking for the name of a lender you'll need to upgrade to a paid account and post in the Marketplace. 

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