HML, Conventional, Portfolio. Do any give you liquid?

[Jazmine S.]

I am trying to make sure I truly understand how lending works... I have always thought that when you have a conventional mortgage, they "lend" you $100k (as an example) for the house, and that is pretty much collateral... You don't ever see a dollar because the money = the house.

For HMLs... I always hear that they lend a certain LTV, plus some rehab costs possibly. So let's say 75% LTV + 10k in repairs... Your loan is 85k. Now, as a rehabber, you need funding in order to make the repairs! So you have the 25k as a downpayment for the home that you use with your personal money... How do you pay the crew for the repairs? Does the lender physically provide you a money order/wire funds etc.?

And what about portfolio lenders?