What Type Mortgage Do I Need?
Buying a house that needs some work – worth $ 650k in great shape – contract for $ 429k. Thinking VA, but the limit is $ 417k. Have a high DTI, but good income (including self-employed and rentals). The mortgage will be cheaper than the rent on the house (already living there). What type of mortgage would be easiest to get into? Have a 713 middle credit score and possibly 5% down if necessary. Can I get a hard money loan and then refi it for renovations?
Recently closed on a home for $ 20,000 (terrible condition)
Put in $ 10,000 in renovations (practically a brand new home now)
My guesstimate is the house is worth between $ 65,000 and $ 100,000 in today’s market
I want to ‘refinance’ so that I can pay off this mortgage and use the extra money to purchase another house for approximately the same price including renovations and I want to rent out the second house. I would get around $ 1,000 to $ 1,200 per month off the rental of a similar home…
Is it possible to take a new home equity loan so soon? Are they stricter on refinancing? What would I have to be careful with? Any experiences?
Thanks for all answers!