Question:

What Type Mortgage Do I Need?

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Buying a house that needs some work - worth $650k in great shape - contract for $429k. Thinking VA, but the limit is $417k. Have a high DTI, but good income (including self-employed and rentals). The mortgage will be cheaper than the rent on the house (already living there). What type of mortgage would be easiest to get into? Have a 713 middle credit score and possibly 5% down if necessary. Can I get a hard money loan and then refi it for renovations?

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  1. I think you are on the right track with the idea of a hard money loan first and from there opt to refinance for renovations or get a HELOC.


  2. .  It's the fix up that makes this difficult. VA will not let you buy it unless it is all fixed up.  If it were all fixed, the seller would be selling it for $650,000.  You know that.

    You should always pay cash for fixups.  Then refi when it is beautiful.  2 hard money lenders in Phoenix were in the newspaper.  They didn't show up with the money on closing day for lots of buyers.  The buyers were shocked.  THey had agreed to pay 18% interest in return for the cash. Now they will lose their earnest money if they don't find cash in 24 hours.

  3. put as much down as you possible can and leave some for fixing up. you say you have 5percent down that is more that $20000  so you have enough for the VA limit.  good luck

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