Using a Bank to Pay Hard Money Lender
Here's the situation:
I've got a property I'd buy for 170k all in (140k asking, 20k rehab, estimating 30k). I'd imagine no bank will ever give me 170k for a 140k house. So, let's say I go to a hard money lender and get a balloon payment loan after interest only payments on the first year.
Is it possible to convince a bank to grant an FHA loan to me at ARV on my rehab, if they understand that I own the house already, and would be living there? The loan wouldn't be used to purchase the house-- it would be used to pay back the hard money lender, and I would own the house already.