buying Ugly Houses

[23Ballistic randyvanaken]

Ok guys need advice on where to start. A friend is selling a house that is located close to some relatives. The house needs alot of work ..new roof, sheetrock, basically remoded. In-laws live in neighborhood" I know it's close" and their house is worth around $140k. I have a chance to buy this home for around $35k. It is on 1acre of land, 4bdrm, plumming, electric is good. Where do you start as far as homeloan on something like this? I would like to get loan for around $70 and put back into home. I was planning on having home appraised, estimate on roof & remodeling and then take info to bank for loan. Am I on the right track?

 

[Dreman]

You're on the right track, but talk to your bank first to see what they want to get it done. Banks want reassurance that the work will get done and it will be worth more than what you are borrowing when you get done. This is inside the Houston city limits, right? You'll have to make sure all the permits are accounted for, and plumbing and electrical work will all have to be done by licensed professionals.

 

[23Ballistic randyvanaken]

No it's actually in the County so taxes should be cheaper..

 

[Dreman]

Really? Where?

 

[Robert Cuenca]

sounds like your in the right direction,



is the property listed with a realtor? they would know what it would take to do what you want, otherwise start talking to a local bank. i would imagine the acre its on is worth the entire selling price. it sounds like a great investment.

 

[23Ballistic randyvanaken]

In Brazoria County ..Not listed with realtor. Friends family is selling it.

 

[Dreman]

Cool. We're trying to buy just across the county line into Montgomery County.



You might try a mortgage broker, expecially those that are used to setting up construction loans. I went with a broker years ago to buy my first house from my family, and he helped me through the entire process. Mortgage brokers are not tied to any one bank or lending institution, so they can sometimes get you together with a lesser known lending institution that specializes in loans like that.

 

[ReggieMRegalOne05 Legaspi]

Don't forget to check on county regulations on renovations or rehabs, regarding asbestos removal as well as lead paint. Since it is an old house, it may contain both.

 

[buzz worth]

are you going to live in it or fix it up and resell? if it is to resell, then get an interest only, building loan.



buzz-erator

 

[Sed Thompson]

I was thinking of doing the samething inside the city limits right off of the 610 Loop. House really cheap, but needs alot of work to resale.

 

[D J]

well, I work for a bank, I could possibly help you out....Are there any Regions Banks in your area?

 

[Larry Gamble]

It's probably doable.

 

[Larry Gamble]

I've got several ways to pursue this and it all depends on your credit.



One of our lenders will do 100% (not 90% LTV) with no PMI with a 550 FICO score. We got a guy a mortgage ONE day after his bankruptcy went final.



I sure there is a product that will work for you.



Larry