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Updated about 3 years ago on . Most recent reply
Borrowing more than purchase price
Hey guys!
Quick question. If i am going to buy a flip house for 150k and my estimated remodel cost is at 30-35k are there certain types of loans to where i can finance the extra 30-35k on top of the purchase price of the house?
Most Popular Reply
Some hard money lenders will cover the purchase price and the remodel costs if the ARV looks good. There are rehab loans out there but both HML and banks typically want you to have some kind of skin in the game. All of this depends on the ARV of course. If you found a property that has an ARV of over 265k, I'm sure the banks would line up to lend you that 35k.
Interview local small banks and see what their lending requirements are, and what LTVs they can offer as well as seasoning periods. Check out this Biggerpockets blog to help you interview lenders by clicking here.