Borrowing Against Fully Owned 3 Family House
Hi. My wife and I own outright a 3 family Williamsburg house we bought a little over a year ago. We’ve got some renovation issues and need extra liquidity. Given the profile of the building, what would be our best avenue to finance the work outside of the 203K route? Ideally, i’d like to take…
Hi. My wife and I own outright a 3 family Williamsburg house we bought a little over a year ago. We’ve got some renovation issues and need extra liquidity. Given the profile of the building, what would be our best avenue to finance the work outside of the 203K route? Ideally, i’d like to take out a small mortgage, around $100K. I have excellent credit, decent income, and own the building completely. Any advice?
OHHH violations… the plot thickens. Depending on the violations you may or may not be able to get a loan. It depends if they will affect title.
We’re living in the house–we are the only ones–and by the time the appraiser gets there, it will be painted with most fixtures in place. It’s no show piece but it’s not a wreck. I’ll spare you of how I got to this point, but my primary issue is we got hit with a stop work order due to a plumber who never pulled the permits he was paid to pull. I need the liquidity to deal with fixing the violations
Petebklyn- If the house is in disrepair it will be difficult to pass the appraiser inspection to get the HELOC. You may get away with it IF the bank/lender doesn’t do a full appraisal but instead a drive by or a property inspection waiver.
bobjohn- All the major banks offer unsecured lines. TD bank was offering 7.9% up to 50k last I checked, Chase and Citi also do.
why can’t you get a home equity Line of Credit? altho variable – tied to prime rate so pretty cheap and most places no closing costs.
Adam, is it really possible to get 100K uncollaterized loan from a bank? I though it is only possible from the chap on Brighton. But he would take my kidney as collateral 🙂
It really depends on the condition of the property. Lenders are going to have issues with property that is unlivable or has visable damage. Some of these issues can be cleaned up to pass the appraiser’s test such as painting over water damage while others such as missing kitchens, damaged ceilings and walls are more difficult to “band-aid”
.
Is this an owner occupied house? Need to know more details to determine how difficult it will be to obtain a loan.
At the end of the day you could always apply for an unsecured line of credit from a bank. Usually about 9-10% in the 50-100k range. Finish the work and then refinance into a real mortgage when the work is done.
My 2 cents
Adam Dahill
WCS LENDING