Financing My First Property (Philly) - No Proof of Income

8 Replies

I have acquired the property I grew up in, and it requires a lot of work. It's a really outdated house requiring a full rehab, I am estimating no more than 90K. I am looking for funding to rehab, then to refinance out. I have a Pennsylvania LLC, just in case that improves my funding options. I am hoping to have it done and refinanced by Christmas. Are there any suggestions on my rehab funding and refinance strategies should be based on these barriers/details?:

1. I have no proof of income, my severance package from my past W2 ends this month, I’ve been depending on wholesale checks.

2. My credit is around 680, but will shoot up in the next 1-2 months due to a credit repair service I am using, as well as possible trade line additions.

3. I have 100% equity in the property.

4. So far, I found a HML at 12% and 2 points for 6 months for the rehab, and a refi of 15 years at 4.5%.

I hope I gave a good enough picture of my situation. Please feel free to suggest any lenders, contractors, appraisers, inspectors, or any other entities key to the process. Also, I am open to any tips on how to work this situation.

Thank you!

Originally posted by @Michael Eaton-Byrd :

I have acquired the property I grew up in, and it requires a lot of work. It's a really outdated house requiring a full rehab, I am estimating no more than 90K. I am looking for funding to rehab, then to refinance out. I have a Pennsylvania LLC, just in case that improves my funding options. I am hoping to have it done and refinanced by Christmas. Are there any suggestions on my rehab funding and refinance strategies should be based on these barriers/details?:

1. I have no proof of income, my severance package from my past W2 ends this month, I’ve been depending on wholesale checks.

2. My credit is around 680, but will shoot up in the next 1-2 months due to a credit repair service I am using, as well as possible trade line additions.

3. I have 100% equity in the property.

4. So far, I found a HML at 12% and 2 points for 6 months for the rehab, and a refi of 15 years at 4.5%.

I hope I gave a good enough picture of my situation. Please feel free to suggest any lenders, contractors, appraisers, inspectors, or any other entities key to the process. Also, I am open to any tips on how to work this situation.

Thank you!

Do you own your own primary home, and this is an investment property?

@Michael Eaton-Byrd - find a private partner, ideally with contracting experience and money. You contribute the house, they pay for and help manage the fix up, you split the profits. If it’s a 90k rehab, it is very unlikely you will be done by Christmas with all the permits needed for changing plumbing, electrical, etc. I bought a house in nov and was almost done by February but got hit with permits that didn’t close until May so I couldn’t sell until then (closed in June.). If you have a CO now, try to keep it so you can rent our bedrooms to single professionals for spare cash while you do stuff. Once you gut you won’t see a CO for a long time. If you have it in your name and occupy it, most town permit offices are easier on you.

@michael eaton-byrd

It doesn't matter that you are switching it yo an llc, if you live there it's owner occupied and is governed by different rules