Money To Complete Rehab on a Home with No Mortgage

[Chana O'Leary]

Hi all,

I bought a foreclosure for cash ($28,000) and have put $50,000.00 cash into it. The heavy, big work has been done and now it's the final touches. Flooring, and kitchen/bath furniture - and I'm done! Two brokers have given me listing estimates of $100,000 - $130,000. 

I would like to pull some money out to complete the work - about $15,000-$20,000. I owe nothing on the house and I thought this would be straightforward. But, apparently, it's not. 

My local bank tells me I have to qualify for a brand-new mortgage in order to take any money out of the house. But, even though I own another home besides this one, make a mid-six figure income and have excellent job security (cybersecurity), and a DTI ratio of 13% - I can't qualify because my FICO score (612) is too low. (Nasty divorce last year - husband didn't pay my bills while I was out of the country several months - although I sent him the money. I only discovered this recently - but, I am cleaning up my credit. Paying off the things that I don't even "need" to - because it's the right thing to do... But it will take years to get it up where they want it 670 or higher.) In the meantime, my house sits 90% complete. Should I sell it unfinished - and take the significant hit - after all the months of work or ---- ?

I approached a hard money lender - but again - my score is too low. So, even though I own this home free and clear - and need very little to get it on the market and repay the loan - I seem to be out of luck. I am writing this here to ask if anyone has run up against this - and if they have any resources or suggestions for someone in this situation.

Any and all suggestions will be gratefully considered!

Thanks in advance - !

[Ryanne Hodson]

you don't owe a mortgage, so there is no time clock ticking away for paying this back (plus interest). you also mentioned you have a full time job that sounds like it pays well. why not take a break, save the money you need, or pay as you go per project using your paycheck. if you haven't had to borrow money at all for this project, why start now?