Financing NON-move-in-ready house / contractor rec Philadelphia

4 Replies

Hi BP community, 

My husband and I have a house under contract now, but we cannot find any lender who would finance a Multi Family, Investment property (not owner occupy), that's NOT move-in-ready.  The seller was in process of rehab and quit before completing.  It's a legal 2-family house in Roxborough, Philadelphia. The 1st unit is almost done (kitchen and bathrooms are good), but 2nd unit is missing bathroom and kitchens. In the 2nd unit, the bathroom is gutted, plumbing hook ups are there, but there are no toilet, shower pan, and the room is open to the studs. There is no kitchen sink or range. Banks do not consider this "move-in-ready". 

From what I understand, below are Fannie Mae guidelines. 

  • For conventional loan (20% down, pay rehab out of pocket), all units need to be move-in ready.
  • For renovation loan, all mortgage companies only do single family houses, or owner occupied multi families (203K). 

I'm left to think that only options left are hard money lenders. Does anyone have any experience in navigating similar situation without using hard money? We could get hard money, rehab, and immediately refinance into conventional. However, I'm just really afraid of using hard money... This is our 2nd deal (1st one is a house-hack using FHA).

Please chime in if anyone has inputs/recommendations for HML! We need to find a lender right away.

Separately, we need recommendations for contractors who can install kitchens and bathrooms. The job is not too big, we estimate it to be about $15-25K. 

THANK YOU! Happy July 4th!


The Home Style loan is the loan for this type of project but Fannie Mae's guidelines limit it to a single family for a non owner occupied.  That is why you are having trouble find a lender for this.    Try Ian Walsh at Hard Money Bankers. Rates are around 14% with several points just an FYI and all work must be done within a year.    Tell him Mike referred you.

Hi Rikako,

Another avenue could be private money involving short term bridge loans, however one obstacle you will run into is the loan amount, some lenders have minimum requirement on loan amounts.