Any experience with HMLs for the purchase only?

[Brian Rocha]

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.

[Justin Landesman]

@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!