How a Conscruction Loan works?

[Ben Swartz]

I found an amazing opportunity for a fixer upper but its going to need a good amount of work done about 20k to 40k on the high end. I want to look at securing a construction loan but I don’t have a huge knowledge base on that. I was hoping somebody who is knowledgeable would be able to help me out? Thanks so much for reading.

[Account Closed]

If just $20k to $40k, I wouldn't imagine it is a construction loan. A fix and flip loan should be a good-fit for you. The process is easy, you talk to a lender about your situation, he will give you a quote or suggestion. Then move to appraisal, documents collection and underwriting, then close, just like normal house buying process. For renovation cost, typically you can get 100% financing. It is a request and reimburse process to fund the whole renovation.