Hello, everyone, I'm looking for some advice on funding. I've found myself at a crossroads because I had my mind set on using a HELOC to fund my rehab on my duplex. I live on one side of the duplex and I'm remodeling the other side. I gutted one side prematurely and then I went looking for a HELOC. During this process, I found out that it is very hard to receive a HELOC on a residence that is not livable. Every HELOC I applied for appraised the duplex as if it was one unit because the duplex is under one roof. This is my first rehab and I'm looking to evaluate my options. There is no mortgage on the property. I'm looking to rehab this property refinance and use this as a spring board into buying a multi-unit property. Any advice is greatly appreciated.
@Tommie Thomas , can you just get a mortgage and use that cash for the rehab? Seems like the easiest route.
@Tommie Thomas if you are "house hacking" a duplex then an FHA 203(k) loan might be an option - that's the FHA version of a rehab loan. Have you tried that route?
@Michael Cohen can help you. He's with Movement and does PA. You'll be closed by the end of October on a 203K. Smoking fast. If the link to him doesn't work, do a person search. Very knowledgeable and licensed.
Hope that helps
@Tommie Thomas , if you already own the property, I don't think you can refi using an FHA loan. Pretty sure that's for purchases only.
@Jaysen Medhurst you can absolutely use a FHA 203(k) for renovating a home you already occupy. Not every bank offers it but you can certainly use it on a home you already own.
I stand corrected, @Andrew Postell .
@Stephanie P. thank you, I was having a hard time google searching FHA loan lenders in Pittsburgh. I started calling contractors and asking for recommendations. I'll reach out to Michael Cohen today.
Similar question. I’m looking to buy a distressed property using cash for $100K. Will need $50K for rehab and according to comps it should appraise for at least $215K. I have the full $100K of cash on hand but need a little extra to fund the rehab. Does anyone know if it’s possible to get a HELOC on a distressed property that you own outright? From what I’ve read banks don’t like to lend on distressed properties that won’t qualify for mortgages.