Updated over 8 years ago on . Most recent reply
Family Home Refinance
Not sure if this is the place to ask this question, if not I apologize. My mom passed in November and her house was left to me and my siblings it's 5 of us. I live in Atlanta, GA, one of my brothers live in Baton Rouge, LA, my two brother's and sister live in Alabama which is where the house is located. It's a mortgage on the house ($450 a month) and the home needs about $25,000 worth of work. My sister pays the mortgage but can't get a loan to do a remodel. Me and three of my brothers have mortgages and my other brother is no help at all. My question is, is it a way to get another loan($55,000: Pay off current loan: $30,000 and Remodel: $25,000) not necessary from a bank maybe a private lender? The house is worth only $30k. I've talked to some people who said that with the remodel we can possibly rent it out as section 8 and get $700 a month (it's a 3/1). Any suggestions are helpful, and if I'm in the wrong section I apologize.
Most Popular Reply
@LaDerrick Langham If you want to be able to get a loan to refinance and renovate, the after renovation value needs to be above the amount invested. your scenario that you have described is 55k for refi and reno and ARV is 45k. Talk to a realtor in the area and ask what some comps are based on the proposed renovations? Possibly an addition would give you the value you need to get financing.
Hope this helps.