I have came across a good deal that im having an issue finding funding for. I have looked into the FHA 203K and others like it but have yet to come up with my best option. The property is a semi distressed property for 125k, ARV 220K. I have 10K to put down and keep enough in savings for repairs. The home will not pass an inspection due to mildew/mold in the basement. I was uable to obtain at 203K due too already having an FHA on my townhouse. I plan to make this my primary residence so I could obtain money to make the original purchase, fix it to meet a lenders requirements and refi into a traditional or VA loan. looking for some advice before someone else picks up the deal. Thanks
@Mike Bell Call around and check with credit unions or smaller banks that do portfolio loans (they keep them in house and don'' resell them). They usually have more flexibility on their lending guidelines.
That said, if you immediately refi out, they probably wouldn't be too happy. I've done a few deals like this with my local bank, and although the rates are slightly higher (5-6%), I keep the loans with them for the relationship.
Private money will be your best bet. Good luck.