Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 3 months ago on . Most recent reply

User Stats

9
Posts
1
Votes
Brian Rocha
1
Votes |
9
Posts

Any experience with HMLs for the purchase only?

Brian Rocha
Posted

I'm looking to secure a HML for a fix n flip in Florida and for now and am only looking to secure for the purchase price only and handle the rehab costs myself. One of the side benefits is that I can avoid the whole draw/inspection process (not overall inspection, just the ones tied to the draws) and don't have to worry about draw fees. I imagine the whole process is simpler but can anyone tell me how different it is when you don't borrow the rehab costs? I'm guessing they want some sort of updates during the rehab.

Most Popular Reply

User Stats

35
Posts
20
Votes
Justin Landesman
  • Lender
  • Los Angeles, CA
20
Votes |
35
Posts
Justin Landesman
  • Lender
  • Los Angeles, CA
Replied

@Brian Rocha It’s clear why most lenders insist on including rehab funds in the loan, and all of our partner banks follow this practice for fix-and-flip loans to minimize risk and meet securitization standards. However, we are able to offer this type of financing internally with our own funds on a case-by-case basis, taking into account the borrower’s profile, the property’s condition, and the scope of work.

@Brandon Croucier is giving you solid info on finding an experienced and honest mortgage broker who can shop your exact scenario both ways, with the rehab and without and break down the benefits of each with all fees so you can see an apples to apples comparison. 

Hope this helps!


Loading replies...