All Forum Posts by: J.R. Smitherman

If you have equity, and the "unfinished" items wouldn't prevent sale (roof, furnance, etc.) You can likely get a loan/heloc. However the property appraisal will suffer, and you'll still need the total loan to value numbers to line up. However, assuming the 235k number is what it appraises for as part of the heloc, the LTV number puts you at a total of 176k borrowed for 75% or 188k for 80%. If you financed the whole 171k, that only leaves you 5-17k on a heloc, plus whatever down payment you put in. You might want to try the original lender and see if they can use the recent appraisal....might "streamline" the approval. It can't hurt to ask.

Note, I am NOT a banker. Just have financed/heloc'd a few times over the years.

Thank you for your reply! I did put money down when I purchased the house, so my current mortgage balance is lower than the purchase price of $171,000, thankfully.

0 Votes

Hi everyone! I'll detail my current situation below.

I bought a house in October for approximately $171,000. It was a foreclosure. When the lender had the property appraised, it appraised for $235,000. With that good news, I hatched a plan to remodel the house and possibly live in it for a couple of years, then sell it and profit some money. However, I'm new to investing in real estate and have found myself in the middle of renovations with funds beginning to run low. My original plan was to get a HELOC or home equity loan this summer (since it'd be passed some lenders "seasoning" requirements) and use that money to pay back the loan of $15,000 that I got from my parents. However, I'm concerned that I won't be able to get a HELOC or home equity loan due to the incomplete renovations.

Does anyone have experience with something similar? Do you know if partially completed renovations will affect a HELOC or home equity loan? Should I explore other financing options like possibly a personal loan or hard money?

I hope I gave enough context for you to understand my situation. If not, please ask questions! I'm open to any advice and creative financing ideas that you have, so please comment!

Thank you for your help!

0 Votes

All Forum Posts by: J.R. Smitherman

J.R. Smitherman has started 1 posts and replied 2 times.

Post: Creative Funding for Completing Renovations

Post: Creative Funding for Completing Renovations