Lending options for REO requiring TLC

10 Replies

What loan options are available for REO requiring some work (almost 30/40k). Will conventional route work ?

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@Charanjit Singh If you are looking to live in the property then a 203k loan is something you should look into. I have had clients have success with that loan product.

If this is a non-owner occupied house than hard money, private money, or paying cash are the most popular ways I see people acquiring here in CT and I am assuming NJ is similar.

hi @Charanjit Singh there are some great renovation loans from traditional/conventional lenders available, whether the property is owner occupied or not. FHA 203K, Fannie Mae HomeStyle, etc

Speak With a qualified lender in your area, but definitely use a loan officer who specializes in renovation loans.

As a follow up to @Michael Cohen comment. The Fannie Mae Homestyle renovation loan is good for a purchase of an owner occupied 1-4 unit, a second home or a single family rental property. 

I am assuming fannie may homestyle and 203k works for non-owner occupied. Is that correct ?
Originally posted by @Charanjit Singh :
I am assuming fannie may homestyle and 203k works for non-owner occupied. Is that correct ?

 Fannie Mae HomeStyle can be used for a 1-unit investment property at 15% down.

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