Sarah,
Congratulations on finding your first flip opportunity! Another viable option to consider would be a FHA 203K loan. They include money for fix up the property and low down sometimes as low as 3.5%.
Here's the link: http://www.re-buildusa.com/homeowners/fha203kfaqs....
What are the benefits of an FHA loan?
The FHA identifies the following benefits:
- Low cost -- FHA-insured loans have competitive interest rates because the federal government insures the loans for lenders.
- Smaller down payment -- FHA-insured loans have a low 3.5% down payment and the money can come from a family member, employer or charitable organization as a gift.
- Easier qualification -- Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.
- Less than perfect credit -- You don't have to have perfect credit to get an FHA-insured mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA-insured loan than a conventional loan.
- More protection to keep your home -- The FHA has been helping people since 1934. Should you encounter hard times after buying your home, the FHA has many options to keep you in your home and avoid foreclosure.
Let us know how it goes.
