Home Equity question

[Prishonda K.]

Hello! My mom has inherited a duplex and triplex with tenants and no mortgage on the property. The property needs to be renovated but my mom doesn't have the money. The property has not been updated in about 20 years, so we definitely have some work to do. Last year the property was appraised at $105k. My mom wants to sell the property to eliminate the headache but we (her kids) believe she should keep it because she will probably only get $60k for it, if that with the repairs needed. Her credit is okay. Do you think she will be able to get an equity loan or any other loan so she can fix up the property? Would they have to pull her credit or can they use the property as collateral? Please advise.

Thanks so much!

[Brie Schmidt]

Yes they will pull her credit and yes she will need to apply for a mortgage. If the property has a documented rental history they may be able to use the income from it to qualify for the mortgage. She should be able to pull out 75% of the value