Crazy to ask bank for repairs & updates?!

[Michelle Boyd]

Any insights or strategies for financing major repairs or even updates for MFs? I'm a newbie so please don't eat me alive. Just wondering the best way to fund the work needed on a deal (outside of the mortgage) or can that be included in the mortgage? If so, what would be the best mortgage terms? Thank you for your insights.

[Jason Wray]

Michelle,

There are more than a few loan types that allow you to purchase a home and include renovations. There are also fix & Flip loans for that quick renovation and flip. You have the options to do a cash out refinance on a primary, second home or investment to get the cash needed. You also have a HELOC which is not a cash out refinance its an "Open End Mortgage" similar to a credit card. You only pay on what you use and can pay off the balance and use it over and over again.

For Primary residence purchases you have FHA 203K, Fannie Mae - Renovation, Traditional rehab based on ARV. Investment properties you can do a fix and flip, HELOC - Secured or Non-secured (Not attached to title). Best thing to do is talk to a Banker or loan officer and create business proxy or game plan on what you have and what you qualify for in order to get it approved and onto the next phase... Basically goal planning...