Posted by Rene Perrin on January 15, 1999 at 20:18:01:
I think you can do a little better if you own the home free and clear. It will really depend on a number of things including the amount ($$) of rehab required in relation to both the current value and the after-repaired value. You may be better off just doing a cash out refi for the amount that you need to rehab and carry the property. The big point there is that you control the use of the money and do not need to get inspections from the lender. If the property is totally uninhabitacble right now, you may need a construction (rehab) loan but, again that would not be your first choice. Feel free to e-mail me with the particulars and I’ll steer you in the right direction.