Short-Term Asset-Secured Loan to Finish & Sell- realistic without w2 income?
Inherited a 3/2 single-family property in rural Mississippi that is approximately 90% complete.
Remaining work: ~ $20,000
Back property taxes: ~ $6,500
Family loan ($10,000) can be repaid at closing
Estimated finished value: realistically $120,000–$140,000 (not assuming top-end pricing).
We believe we would need approximately $25,000–$30,000 to finish the property cleanly and list it for sale, though we are pressure-testing that assumption.
Challenge:
• Thin credit file on my end (695 score, limited history)
• Husband has income but prior negative credit history
• Seasonal and variable income (no stable W2 employment)
• We cannot support required monthly loan payments
We are specifically trying to determine whether a short-term loan (6–12 months), secured by the property, with interest-only or accrued interest payable at closing, is realistic in this scenario.
Questions for experienced investors:
- Are loans structured with accrued interest (paid entirely at closing) realistic for a borrower profile like this?
- Would this require a true private lender / hard money lender, or have you seen small portfolio lenders structure something similar?
- At conservative underwriting (60–65% of realistic finished value), would this be considered adequately secured?
- What terms or red flags should we watch for in this type of structure?
The core decision we’re trying to make: If this type of financing is unrealistic or excessively risky, we will list and sell as-is. If it’s realistically obtainable without destabilizing risk, we will finish and sell.
Appreciate direct and candid input.
