Massachusetts owner occupied hard money loans

[Matt Charette]

I’m not sure if this post will break rules on posting so apologies if it does and it’s too specific. 

I’m looking at purchasing a property with 2x single family homes on it. The problem is that it’s failed Title V, has two cesspools. Obviously this won’t fly with traditional financing unless it passes. It’s being sold As-Is so that won’t happen. 

My plan is to owner occupy one of the houses, I’ll have to sell my primary in the process. The PP will be around $500k and I’m estimating $30k for the sewer connections. 

My questions and challenges are as follows:

I’m struggling to find hard money lending for owner occupied properties. Yes it’s a repair/renovation but I need to only get across the finish line to meet the compliance repairs to move to traditional financing. Do these exist, what should I be googling specifically to find them? Can anyone recommend or point me to one?

Can I get a quote for this repair when I don’t own the property already? I’d assume so since it’s such a implicating requirement on the sale of the property.

Is it hard to get a mortgage and get out of the private money once it’s complete?

if anyone has done this before I’d LOVE to pick your brain.

If anyone has any info on what they might think it would run to do this repair that would be helpful as well. One home is directly on the street, the other is probably 150ft away. I don’t know if cesspools need to be cleaned up and removed in this process. 

[Torrell Palmason]

Hey Matt,

So for starters Hard Money doesn't do Owner Occupied. If you took out Hard Money and did not Owner Occupy you could do the repairs and then once you refinance to conventional do the refinance as an owner occupied and then move in.

Another option albeit one I've seen be quite the pain of a process is the FHA 203k. With Credit at 580 or better the down payment will be 3.5%. This is a Owner Occupied loan so that will fit your situation however all repairs and renovations must be completed by a contractor and not the Owner. If you go this route I would suggest finding a lender who does these types of loans frequently as this a specialized loan and you do not want to be going through this process with someone who is new to this loan type. Also, this will work if both homes are on a single parcel not a parcel for each home as the second parcel wouldn't be considered Owner Occupied but an investment.

Best of Luck!