Seriously considering purchasing an REO property for our primary residence, problem is it needs a lot of work. I am already pre-authorized at my primary bank for mortgage considerably higher, but they are telling me I would have to wait 3-6 months to apply for equity or construction loan (and clearly no guarantees we would get it). We would need work done before moving in. How can I get a loan that would include money for the work or a 2nd loan to cover those costs? I believe price is too high for FHA 203 rehab loan. We have good credit and up to 20% down payment. Any suggestions on who might do this type of loan. Need something soon, so we don't miss our opportunity. I'm in CA if that makes a difference.
Thanks for the help.
Some banks, usually local banks, will offer a loan at 70%-75% of what you will put into the property up to the appraisal amount. They will put any excess funds into escrow and will release it to you once you show them receipts on the rehab. I don't have any experiance with this for a personal residence but we have done this with investment property before.
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