Finance for buying a Rehab Foreclosure - Which I will live in.

Finance for buying a Rehab Foreclosure - Which I will live in.

Investor · Fort Walton Beach, FL · Member since 2017 · 19 posts · 5 votes

Hello BP!

I am throwing this out here because I am trying to see if somebody knows of an option I do not. 

I am looking a a place in Shalimar, Fl -- Right next to Fort Walton Beach, Niceville, and Destin. 

It is pretty run down, and I estimate 100,000 or so in rehab costs. The lot defiantly listed for way less square footage than it truly has, due to a garage bedroom conversion, a lot in the 2 car garage, and some other additions. If I get the prices I want. I will get it at 70 sqft. and After repair value is safely 135. Currently its listed as 1800 square feet, but I think it has closer to 2300-2500. 

Basically, traditional loans will not finance 100K in rehab costs. I know hard lending is an option, I am trying to have least down as possible. Initially I wanted to use my VA loan, but that wont work in this case.

Can anything offer any loan structure they may think would be worth looking into?

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  • Investor · Fort Walton Beach, FL · Member since 2015 · 33 posts · 5 votes
    9y

    Hey Tyler! I'm a realtor in Navarre, I just separated from active duty last week so I'm very familiar with these areas. Let me PM you so I can see what we can do to get you going. 

    Derek 

  • Warner Robins, GA · Member since 2016 · 244 posts · 167 votes
    9y
    Hey Tyler, I've done a va loan ft a foreclosure. Let me know if you have any questions I'm in the local area and active duty
  • Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
    9y
    Tyler Austin look into FHA 203k loans they are for owner occupants buying homes that need rehab work . Some info here : https://www.zillow.com/mortgage-learning/fha-203k/ It seems most hard money lenders won't loan on property that is going to be owned occupied , just on investment property at least the ones I've seen. Good luck
  • Investor · Fort Walton Beach, FL · Member since 2017 · 19 posts · 5 votes
    9y

    @Zach Westerfield did you have remodel costs covered?

  • John PowellPro Member
    Real Estate Agent · Kennesaw, GA · Member since 2015 · 308 posts · 153 votes
    9y

    You could use hard money with in an LLC then when the house is finished you could personally buy it with a VA as long as you are going to live in it. I've been considering doing that as well. If the house is in liveable condition just in need of update a VA loan is still a possibility. My current personal home in Niceville was rough but passed VA. It had paruqe floors that were coming up in places old single pane aluminum windows and some aluminum wire. I was able to buy it with a traditional VA then I spent about $30k rehabbing it. New cabinets, floors, doors, trim, windows, light fixtures.

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