House Hack Refinance Question

[Pete Perez]

I have a duplex in Renton WA. I am renting one unit out and living in while rehabbing the other. I am wondering if its possible to borrow equity in the property to finish the rehab?

I owe $330k and ARV is $600k (based on 4 recent sales in the neighborhood). I need about $18k to finish the rehab. Long term goal is to finish the rehab, refinance to recoup some of my out of pocket rehab costs, keep it rented long term.

Can anybody shed some light on what my options are? I have talked to only a few banks and they say I can't borrow or refinance until I complete the rehab. The unit I am living in is partially finished.

[Dan Portka]

hey Pete, a few different options i can think of based on your situation

1) take out a home equity line of credit (HELOC)

2) use a personal line of credit (not tied to your duplex)

3) use a renovation loan ie 203K or homestyle. Finding the right lender as you've already experienced can be challenging. Below is a link from HUD. Click the latest month and search for your metro. You'll find the lenders that have done the most 203k loans in your area. Just based on the numbers, i'd think EVERGREEN MONEYSOURCE MTG CO would be a good lender to call.