1st Property Under Contract, How should I finance

[Sebastian Heretyk]

Hello Bigger Pockets community. 

I am under contract for my first property, however I have yet to finalize a loan. The recent changes that have been implied on banks have made me a bit hesitant and I am not sure what would my best option be.

Here are the details of the project.

Purchase price 107,500

ARV: 180,000

Est. Rehab 30,000

Available capital for project: $30,000

I've got good credit score, but am self employed and am unable to get a direct loan from a bank under my name. I am thinking to co-finance with a family member who's got a stable job and good W2, so I know they are good to get a loan under their name, but I'm thinking maybe there is a better way for my to finance this other than thru traditional Fannie Mae route.

Please help, all the best,

Sebastian

[Account Closed]

I would echo Caleb's suggestion. Hard money loan would be ideal for your case. They don't require W2 income proof. As long as the deal makes sense and there is profit, you are qualified. Currently interest rate for first time flippers is around 10%. With the interest only payment option and no prepayment penalty, you actually will not pay too much interest if you can finish up the project 3-6 months.