Updated almost 9 years ago on . Most recent reply
Requesting Additional Funding
Hi everyone
I am new to real estate so please bare with me. I recently bought a house for 140k (sale price). My lender loaned me 172k which included 119k to purchase the property (I put 21k down) and 53k in renovations. My ARV was 315k (70%) but that soon change because my team and I decided to build a new construction due to foundation issues. We have been working on this property for a month now. Since we have this new plan, we need additional funds to finish the project. I was wondering how a lender would typically assess the numbers when requesting additional funds.
Now that you have an understanding of the old numbers, the new numbers looks like this:
Additional funds 40k
70% ARV 420k - 450k
My question is how will the lender assess the new numbers? Can someone break this down for me? Thanks in advance.