creative borrowing in Indianapolis

4 Replies

Hello everyone,

I am relatively new to the forum, so I will introduce myself. My name Is Ciel Tierra and I am an out of state investor from Hawaii and have decided to buy realestate in Indy where I feel there is a sweet spot and also where I have some family. I am interested in buying REO or mortgage-able properties outside of the 465 loop that need minor rehabs such as paint and floor coverings, maybe new kitchen cabs.

My question is, is there a way to buy with a standard 80% LTV investment property loan that also rolls up the cost of minor repairs and rehabs. I am using a HELOC on my home in Hawaii to put up the down payment but would like to buy multiple properties and stretch the heloc as far as possible without using it for repairs if possible.

Further is there anyway around the cash-out refinance (for cash bought properties without seasoning) restriction to only borrowing the purchase price of the home and not the purchase price plus rehab.  

Thank you all for your input


I have a lender who may be able to help me. PM me and I can send you his info. 

@Ciel Tierra  Hi Ciel, welcome to the forum!  There is a homestyle renovation mortgage you can get that allows you to purchase a property and perform the rehab all in one loan with checks and balances through the process.  I have a lender in Indianapolis and familiar with the area that can help you just PM me if you'd like his information.  Thanks.

Thank you both, I looked up Homestyle renovation mortgages through fannie mae and was amazed at the product.  It is of course exactly what I am looking for.  I have asked a few mortgage pros point blank if this exists and they had no idea it did, so thank you very much.  I will PM you both.  I wonder if lenders will approve this for major rehabs or if they will deem it un-mortgageable.

If anyone else has another way I would like to hear it as well, particularly if you know how to cash out refi and roll up the rehab costs with out seasoning it for six months.

@Ciel Tierra I am a local real estate broker and investor in Indianapolis. I have a couple lenders that are good at the renovation loan you are seeking. There are a couple options of getting around seasoning as well. PM me for details.

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