San Marcos, TX need creative loan advice

3 Replies

I am in the process of completing renovations on a historic home in the San Marcos, TX Heritage district. I have finished all of the downstairs renovations except for a small portion of the kitchen and structural wall removal. I am now in need of additional funding to complete the renovation and 2nd floor addition. My issue is I have made the mistake of financing everything out of pocket in the form of savings and two separate personal loans that have had the detrimental effect of both raising my dti and lowering my credit score by approximately 30+ points (was 700+). I am almost positive that my dti is too high for typical construction financing without paying off the two personal loans so I am just looking for any options that anyone on Bigger Pockets might know of. I’m just hoping for a little advice or some out of the box thinking that would help me with my self-inflicted predicament. Looking back there are a multitude of ways that I could have financed and already completed the renovations, but I’ve obviously had to learn the hard way. The absolute hardest part for me right now, is the fact that I know with absolute certainty that I am headed the correct direction, but I just took the long winding path to get there. I know the first suggestion will be to ask family so let me say that I don’t have any family that has the type of money required so that’s not an option. The only thing that I do have is an additional 1250+ square foot at more than $75 a square foot in profit when the renovation is completed. So close yet so far away. Any and all suggestions and comments will be greatly appreciated. Even those comments that tell me what I already know, like how I should have financed the purchase and construction differently from the beginning. Hindsight on your first renovation has remarkable clarity.

Sounds like you no liens on the property and need minimal cash to complete.  Should be a plenty of hml/pml money available given the low ltv...and they don't care about dti/fico and all that (for the most part).

Thanks @David C. I'm actually talking with both a hml and a mortgage broker who's researching possible construction loan alternatives.
I wanted to take a few minutes to thank everyone for the private messages that I received especially from a couple of people in particular @Nghi Le and @Sandra Warren that helped point (lead) me in the right direction. I think that I have a fairly good path forward right now and should be able to complete everything over the next few months. I'll post an update on the progress of the renovation as we close in on the finish line. Thank you to the Bigger Pockets community!

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