Bugs – Maybe I’m not clear or I’m not following you. I apologize for being a little dense or slow. I want to buy the place. I don’t think it’s a construction loan. Are you saying that’s what I need to get?
I want to buy the place, take out a loan to buy it. Looking at 450k – 500k. Yet I’m told b/c of the condition of the place, no kitchen or bath, I guess uninhabitable? I’m told no bank will lend on it.
So now I’m trying to figure out how to get money to buy the place, then I’ll fix it up. Then once fixed, I guess, I can get a bank to give me a regular 30 yr fixed.
Are you saying I can get around all this by getting a construction loan of 500k using the house I’m interested in purchasing as collateral? I am not too concerned about the interest rate being higher. I’m sure it will be. I only want to do it short-term, so I guess make sure no pre-payment penalty. This way, once it’s fixed, I can get a normal 30 yr fixed on the place.
Alternatively, I’m co-owner of a commercial lot off the 210 Freeway, and I thought perhaps I can use that to get a loan to buy the house, then again, once fixing the house, take out a 30 yr fixed and pay off the loan on the commercial. Or at a minimum, use some of the different raw lands I own as collateral. It adds up to more than what I’m looking to get for a loan.
Edit: Or are you saying to take a construction loan against the freeway lot?
I would think I’d have to own the property before they give me a construction loan, so I wouldn’t be able to get a construction loan on the house if I don’t own it yet.
Sorry. I’m a little confused. If you could please help me understand.
