Construction/rehab loans: Can it be a 2nd mortgage

Construction/rehab loans: Can it be a 2nd mortgage

Rental Property Investor · Jackson, MS · Member since 2020 · 156 posts · 41 votes

I got a 4plex under contract. I need 30k+ in repairs but I already have property in acquisition. Is there or can I get a second mortgage to rehab the property for a 30 year period? If so Someone tell me how or who

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  • Lender · San Diego, CA · Member since 2019 · 874 posts · 355 votes
    6y
    Originally posted by @Breelon Bryant:

    I got a 4plex under contract. I need 30k+ in repairs but I already have property in acquisition. Is there or can I get a second mortgage to rehab the property for a 30 year period? If so Someone tell me how or who

    Probably not for 30 years but for a shorter time whats your LTV fo the first?

  • Rental Property Investor · Jackson, MS · Member since 2020 · 156 posts · 41 votes
    6y

    @Guifre Mora i got a FHA loan so its 96%. I have a 3.1% rate. If i refinance to get a streamline it will be 3.7% so thats the reason why i wont refi. My interest rate is great

  • Lender · San Diego, CA · Member since 2019 · 874 posts · 355 votes
    6y
    Originally posted by @Breelon Bryant:

    @Guifre Mora i got a FHA loan so its 96%. I have a 3.1% rate. If i refinance to get a streamline it will be 3.7% so thats the reason why i wont refi. My interest rate is great

     A second will cost you way more than a 3.1% defeating the purpose of the low rate. I'm dong seconds starting at 8% and that's with plenty of equity. 

  • Rental Property Investor · Jackson, MS · Member since 2020 · 156 posts · 41 votes
    6y

    @Guifre Mora ok so in your opinion, getting a refi interest rate at 3.7% to do a fha streamline of 25k would be better than traditional fha and getting a second mortgage?

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