Personal Loan for Down Payment on Hard Money Loan?

[Sharon Evans]

Hi there! My fiance is ready to emabark on his first fix and flip, and he's looking at a Hard Money Loan with Lending Home to finance the purchase and renovation.

As you all know, these HML loans come with a hefty down payment requirement. He has great credit, so obtaining a loan for the down payment and fees (~$20k in this case) would not be a problem, and it's an enticing option considering that the HML lender doesn't really care about credit and DTI ratios. We would also use the personal loan to pay the holding costs during the renovation. Our plan would be to repay the personal loan once the deal is complete, of course. He has enough money to fund the down payment from savings, 401(k) etc., but we don't want to dip into our emergency funds on this first venture.

Has anyone ever utilized a personal loan, along side a HML, to get through your fin and flip project? Does anyone have any other suggestions? Any advice would be greatly appreciated. Thanks!