My partner and I are trying to figure out how to buy a "cash-only" foreclosure using a loan. The property is in our ideal location, its a great size and the asking price along with renovation costs factored in is under 100k. Ideally we would have bought a house using a traditional 30 year mortgage, probably FHA, but as the seller is only accepting cash offers that's not an option. We both have good jobs and good credit scores were just not exactly sure where we can get a personal loan of this size. I spoke with someone who knew quite a bit about mortgages because they worked with traditional mortgages for a few years and they suggested we take out a 100k personal loan, buy the property, renovate and then use the left over money to pay into the loan for a few months, and after the house is in our names and the repairs are done that we could refinance the loan into a traditional 30 year mortgage to bring down the payments (they said from the bank they had worked at the payment on a 100k personal loan would be roughly 2300). Would something like that be an option, and if so how does that work, would our loan some how be turned over into a mortgage or would we be paying off the rest of the loan as well as a mortgage? Were looking for any advice that is relevant to our situation about obtaining a personal loan and potentially refinancing it, nothing about a traditional mortgage since the seller is not taking offers of that kind. Thanks for the help!
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