Best Places for a Mortgage

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about 50k, it is a little old and needs some repairs.

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Where are you going to come up with the 30k to fix it after you secure the mortgage?

They're not going to loan you reno money as a part of the mortgage, though. It'll have to be a separate improvement loan, because they can't loan you more than what the house appraises for.

I don't mean to be offensive, but the 3/2 I bought in 2004 for 98k in Baton Rouge makes what you're looking at seem... uh.. unlikely to command a good rent. I've seen tenants in houses at 2k a month houses in my Houston burb make neighborhoods look like total shite, let puppies pee everywhere on carpet (this was in rental houses I was looking at renting.) Like the realtor opens the door, the stench hits me, and I don't even want to go in.

They actually do have renovation loans now, based on post-improvement value. The LTV max is usually 80% though.

His biggest problem will be 1) the house appraising & 2) this loan is not likely to pass the QM points and fees threshold. The balance will be too small.

You more likely going to need to go through a local bank with their own in-house products, or a credit union. Or, hard money lender, fix it up, then conventional rate-term refi to get out of the HML

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Good question. I hadn’t thought of that, might be better to bundle and finance that with the loan as a renovation.

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You sure about getting involved in this? Are you thinking this is a hands off investment? Hard to imagine buying a 50k property that will not need a good bit of maintenance and money. The term "slum-lord" comes to mind.

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They're not going to loan you reno money as a part of the mortgage, though. It'll have to be a separate improvement loan, because they can't loan you more than what the house appraises for.

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Not true. They can order an appraisal that will show both an "as is" and an "as complete" value and lend on that.

They will give you the $50k at closing to purchase the house then essentially the remaining 30k will be like a construction loan. The lender will likely controll the disbursements of the 30k to mitigate their risk.

It’s probably a trailer