Loan suggestions for beginner

[Scott Sizemore]

Hi BP! What type of loan should I get for my first deal? I have enough to support the rehab just not enough to buy the house too. Any suggestions or referrals?

[Will Fraser]

Hi @Scott Sizemore!  Without specifics on your project here I'm going to have to go with some blanket advice -- here's what I do, and would suggest:   use a construction loan from a local bank and they'll fund something like this:

- 85% of the purchase price and 100% of the rehab costs up to 75% of the appraised value of your finished product.

That will mean that you'll just need to bring 15% of the purchase price of the home (plus closing costs), so that should keep you in the game AND functions nicely when it comes to refinancing because you'll already have a good idea of what 75% LTV is on the property.