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Updated about 3 years ago,

Account Closed
  • New to Real Estate
  • Plainfield, IL
9
Votes |
14
Posts

Buying First Home W/ Intent to Flip, What Loan Type Should I Use?

Account Closed
  • New to Real Estate
  • Plainfield, IL
Posted

I plan to be buying a home here within the next month or so that I will be flipping. My current issue is how should I proceed with the loan type since I have few options:

- I am active duty military and can utilize the VA loan (no money down) option which is great since I can save on money that would be set aside for the flip. The main con with that is I wont be able to quickly flip that property since the VA requires the owner to "intend" stay in the home for at least a year as their primary residence (I know I could refinance after 7 mo but that wouldn't help with the flipping process.)

-  The other option is a conventional loan which as we all know would require at least 20% down and that would severely cut into my rehab money which in turn may cause me to get a bit cheaper of a property that requires less rehab and brings in less money after all is said and done. 

- Correct me if I am wrong here (I am a newbie) but I wouldn't want to go with FHA since of the length of time it would take for me be able to turn around and sell the house or even rent it out as well as all its other stipulations.

This is essentially where I am stuck, I don't know which of the first two I should go with and if there are any other effective options I just don't know about. I'm doing research into owner occupied but I haven't been able to figure out if that is an actual option is this situation. If anyone has any advice or could connect me with any good articles or books I would really appreciate it. Thank you!