Not sure the order to put this sooo...
I found a HUD property that I am interested in purchasing. It is actually a duplex that was first offered at $125,000 and has now been dropped to $112,000 since it has been been on the market for 30 days. I would like to offer about $105,000.
There are two other duplexs in the area on the market for $139,900 and are renting for $650 a side. These are 3 Bedroom - 2 2/12 with a 1 car garage, 1450 sq ft a side. The same as the one I am wanting. These sold for about $180,000 before the bubble.
I am wanting to buy this property and live on one side and rent the other. I went with a realtor to look at the place and it needs about $4000 in repairs, carpet, paint, and some other expenses.
Now my situation. I am self employed now but I had a bankruptcy and foreclosure that was completed on 4/7/08. I have had a credit card with a $4000 credit line for 20 months with perfect payments, I have been renting a house for $975 a month with no late payments, a new $1000 credit card last month and a personal loan for $5000 for 6 months that I have made monthly payments and paid down to $2500. My Fico score is 685. I also have $5000 for down payment.
My realtor gave me a couple lenders to call and said I need to wait at least 2 maybe 3 years before I could get an FHA loan and alsosaid I would need the 20% down to get conventonal loan.
I would be willing to pay for a higher interest to get a loan but not sure where to go. Even a 7% loan for 100k with taxes and insurance would be around $850 a month which is $150 less than what I am paying for rent. With a renter paying $650, I would be paying $200 a month and have in the area of $35000 in equity.
If I were a bank, I'd loan me the money..
Well if I haven't lost you yet, any suggestions on how or if I can get a loan?
I have searched the forums and the only thing I have found is hard money loans but don't think this fits the situation.
Thanks for any input!!