Is it possible to take out a line of credit on the instant equity in a home sold at 1/3 of appraisal value?
A duplex I’m looking at was given to a not for profit via the original owner’s will.
They are selling it for ,900. It was appraised last week for ,000.
If I buy with cash and go to a bank with the deed, are there any institutions or circumstances that would allow me to take cash or a line of credit out of the equity based on its appraisal value, rather than the sales price, without waiting 12 months as would be required for an FHA home equity loan?
I’m asking because I would be able to use the funds to renovate the home (it’s vandalized/needs work).
Otherwise I’d have to go with a 203(k), which would be irksome due to the 6 month timeline and inability to draw funds to get started.
As soon as you buy it the appraised value is 7,900
Additionally, normally banks do not get involved with anything worth less then 50k
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