What has to be on the HUD to recoup my renovation cost for delayed financing?
I would like to get delayed financing for an upcoming cash purchase I’m about to make and want to know if and how I can get my renovation cost on the HUD so I can get that money back when I added value to the distressed property I bought with cash. Is this possible?
The HUD is only going to include expenses related to the purchase at the time of purchase. Funds that you will be spending to renovate will not show up on the HUD. When you apply for financing later, you will likely need an appraisal which will give the increased value of the property post-renovation. The lender will base your loan on that appraised value. Renovations do not always equate to a dollar-for-dollar increase in appraised value though.