Is there a bank or nonprofit org. that give loan to buy housing investment property?between $5,000 and $20,000. These are foreclose homes | |
Is there a bank or nonprofit org. that give loan to buy housing investment property?between $5,000 and $20,000. These are foreclose homes | |
Let me get that straight. You are trying to buy a run-down foreclosed home, rehabilitate it and then resell it, right? In other words you are engaging in a for profit venture for your own personal gain, right?
Ok, NO non-profit organisation can give you a loan, because they are not licensed to be in the banking business, even though you are only looking for a small loan. Secondly, the non-profit can't give you a personal loan (or one secured by that real property), because they are not allowed to do so by their own charter, which is to serve a noble goal for the needy, etc. and your for profit venture does not qualify as one.
That leaves a bank, many of which are in the business of making mortgage loans. However, no bank is eager to make a loan on a piece of junk, because if you do not perform they will have to foreclose on a half finished house and they are not in the construction business. Your best chance is to start with your own bank where you have a present banking business relationship. Expect to show that you have a 30-40% down-payment and the necessary funds to complete the rehab. If you are a licensed general contractor, they will also advance the construction funds too, but probably use a builder's control service (some kind of escrow) for the disbursement of partial funds as the project gets completed.
Don't qualify for that? Well, $5,000 to $20,000 is small enough that you probably can borrow it from a credit card. Just get enough extra money so you can make the monthly payments until the rehabilitated house is sold. Good luck.