Beaufort, SC · Member since 2021 · 6 posts · 1 vote
I have two properties, one in MI & one in SC. SC property was purchased on a fix and flip loan, we decided to keep it and need creative financing. My credit score took a hit, as we used cc to fund the fix. Lots of equity (in both properties) just need someone to hold the note for a year or two, until I can get back on track. Any ideas??
Beaufort, SC · Member since 2021 · 6 posts · 1 vote
4y
Well, we fell in love with the SC property and decided to make it our primary residence. The amount owed on SC is 272k, and I would say the current value of the property is 750 - 800k. The MI house has a value of 630k and 135k is owed (via land contract, so we can't borrow against it). I'm thinking to rent out MI home to cover both notes (should rent for 3k / mo).
Specialist · NJ · Member since 2022 · 1k+ posts · 650 votes
4y
There are lenders who will refi you into a 30 year mortgage. If Property in SC is worth 750k then in a refi you should be able to pull out nearly 500k - payoff the 272 and you have 278k for you. You can payoff MI too and still be left with 143k.
Don't know how long you've held the properties but most lenders like to see 6 months seasoning, some do 3 and a few places require no seasoning.
Well, we fell in love with the SC property and decided to make it our primary residence. The amount owed on SC is 272k, and I would say the current value of the property is 750 - 800k. The MI house has a value of 630k and 135k is owed (via land contract, so we can't borrow against it). I'm thinking to rent out MI home to cover both notes (should rent for 3k / mo).
If you fell in love with the MI home and live in it, then you will regret renting it out every day you're not living in it. On the other hand. You're telling us you have $495k in equity buying only $630k of PV? Let's look at the math here: 1 - Over the next 30 years, you would need $16,500/year in cash flow, not rent,...cash flow, to equal the equity you have in that property. 2 - If that equity was used as a DP at 20%, it would equal $2.475M in PV. That's "M" as in Million...not the $630k in PV you have now. 3 - Assuming that $2.5M in PV, how much CF do you think that could bring? Let's see, that's 4 times the PV you have now. 4 - Keep the MI house as your home, and enjoy it. Let the new configuration of your equity in the SC property pay for it...and more.
I have two properties, one in MI & one in SC. SC property was purchased on a fix and flip loan, we decided to keep it and need creative financing. My credit score took a hit, as we used cc to fund the fix. Lots of equity (in both properties) just need someone to hold the note for a year or two, until I can get back on track. Any ideas??
What's your credit score?
it's just a conventional refinance or get it over to a broker who can refinance it with any number of non-qm lenders.
There are lenders who will refi you into a 30 year mortgage. If Property in SC is worth 750k then in a refi you should be able to pull out nearly 500k - payoff the 272 and you have 278k for you. You can payoff MI too and still be left with 143k.
Don't know how long you've held the properties but most lenders like to see 6 months seasoning, some do 3 and a few places require no seasoning.
I can't, my credit score took a hit as I used Credit cards to fund the reno on the SC house.
I have two properties, one in MI & one in SC. SC property was purchased on a fix and flip loan, we decided to keep it and need creative financing. My credit score took a hit, as we used cc to fund the fix. Lots of equity (in both properties) just need someone to hold the note for a year or two, until I can get back on track. Any ideas??
What's your credit score?
it's just a conventional refinance or get it over to a broker who can refinance it with any number of non-qm lenders.
PM me if you need a referral.
Sadly, high 500's or mid 600... depending on which company you look at. I was turned down, as it was too low.
Are there other factors in which you were turned down besides credit score? A conventional lender will look at 3 things: Income, Assets and Credit. So, if you have a low credit score, but you have other compensating factors (such as good income) it's possible to obtain financing. However, would need all the pieces to the puzzle to know what else is going on. If traditional financing doesn't work, you can look into Non-QM lending.
Are there other factors in which you were turned down besides credit score? A conventional lender will look at 3 things: Income, Assets and Credit. So, if you have a low credit score, but you have other compensating factors (such as good income) it's possible to obtain financing. However, would need all the pieces to the puzzle to know what else is going on. If traditional financing doesn't work, you can look into Non-QM lending.
Yes, we just relocated to SC, so no income for the past months. My husband is just now starting to work again in real estate.