How can I get the money for the purchase of the house and rehab?

[Bryan Rodas]

I want to know how I can get the money for the house and rehab?. I am studying the brrr method but i'm very unsure on how I can get the initial money for the house and the rehab? The differences between hard money and private money? Which one is better? Any tricks? Thank you

[Bill Rich]

Hi Bryan 

There are 2 types of loans out there that allow for rehab financing and home acquisition all rolled into one. They are the FHA 203K and the Fannie Mae HomeStyle. These programs are not hard to secure contrary to what some have said on this post. I handle rehab mortgages and can attest to their ease. I will say the one VERY big factor to consider is the lender you are working with and how much experience they have. A more experienced lender should have the know-how to get you goals accomplished but a lesser experienced lender can lead to disasters. As @Matthew Porcaro mentioned either program would work for you. Just a few things to clarify.  FHA loans are NOT asset based lending as Eric mentioned above.  Asset based lending is when you are using your own assets as the collateral for the mortgage.  The collateral for an FHA loan is the home itself that you are buying.  In addition, FHA 203k loans do not take 8 months to close.  They take about 45 days on average to close.  If you have any questions please let me know.