Question about taking a mortgage out on a property

[pennygirlal]

Hi,

My husband & I are self employed; His Fico 724 mine 697.

We currently have 2 mortgages, one in my name, one is his. We are looking at a new property that we want to purchase for 70,000, rather than go through the hassle of a mortgage to buy the property, we are considering using one of the many offers for a personal loan for 50 k and pay the balance by cash.

After the purchase, repairs/renovations would be necessary we would then like to take out a note on the property to repay the 50 k loan & do repairs, how does this work if you own a property with a clear title and then want to "mortgage" it?

[ShanetheMortgageMan]

It's just like any other refinance except there would be no payoffs... however if you are just going to borrow $50k again, and unless the home isn't in passable condition (per lenders/appraisers guidelines), why not put $20k down and then use the $50k personal loan for the repairs?  Less transaction costs that way since you are going to have to pay an escrow/closing agent fee once when you buy it and then again when you refinance it.