Do I need and can I get a construction loan?

[Jeremy Karja]

I am putting in a PA for my first flip and using personal finacing and hard money to get it done.  My question is with  hard money being so expensive should I be looking for a bank for a construction loan for the 50k rehab?  If I have really good credit and pretty good available credit to used credit, will I qualify?

[Melissa Kirchhoff]

@Jeremy Karja - At the very least, I would be talking to a few lenders about that and comparing the numbers. The numbers will be your answer.

Second, to the qualify, if anyone tells you you can qualify based off hearing good credit and pretty good available credit, they are crazy! lol You will have to talk to a lender about that, and there are wonderful variety of loans you can take advantage of, but you might as well check with them and again, see where the numbers lead you! I think the reno loans are amazing and hope down the line I can do one personally, but keep in mind, there's lots of red tape, so know how that game is played. And bonus tip: If you have a contractor you have a good relationship with who will listen and let you help (things like paint, and other cosmetics), it can be an excellent deal! <-- Just don't talk about that with your lender! =) (and before everyone else freaks out, it was a lender who told me he doesn't want to know that stuff and said just you two work it out on the back end!)

Good luck!