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Updated almost 2 years ago,
How much money do you put down when using an HML
What I thought prior: "An HML will fund about 65% LT ARV + repairs" for a fix and flip
What I'm finding
- There are some HMLs that do the above ("100% financing" as they call it) but they tend to charge 3-4 points instead of ~2
- Most HMLs seem to have an additional criteria "Loan to Cost." So if the purchase price is 65k then you need to come up with maybe 10-15% yourself, plus closing costs, or have private money.
Are these the typical terms you guys are working with too?
Does anyone prefer the "100% financing" HMLs even if they tend to charge more points?
What I'm finding
- There are some HMLs that do the above ("100% financing" as they call it) but they tend to charge 3-4 points instead of ~2
- Most HMLs seem to have an additional criteria "Loan to Cost." So if the purchase price is 65k then you need to come up with maybe 10-15% yourself, plus closing costs, or have private money.
Are these the typical terms you guys are working with too?
Does anyone prefer the "100% financing" HMLs even if they tend to charge more points?