All Forum Posts by: Daniel Helland

Why not both? Check with a couple local banks and have a broker shop your deal to their network. See who comes up with the best deal.

Also, make sure the lenders you or your broker are considering are preferred lenders. That allows them to underwrite the SBA loan in-house, as opposed to sending it to the SBA for underwriting - much easier and faster, which is why I only recommend preferred lenders for SBA.

Whatever you decide, approach the bank you least want to do business with first. Let them be your practice run before you approach the more desirable ones. That way if you screw up, no worries, just move on.

You're only going to be paying interest on the HELOC when it's drawn down. On a term loan, on the other hand, you'll be paying interest on the entire balance. And if you pay it down and need it again, you're looking at a whole new set of closing costs.

Depending on the loan type, you may also be able to get the PMI removed from your current loan. OO residential is outside my scope but check with your current bank.

If you go the SBA route, you can get as high as 90% LTV and a fixed rate over 25 years.

If you know for sure it's going to come up short, I wouldn't waste the money for the appraisal. Wait until you think it's possible, then get it appraised. Assuming your area is appreciating, you'll benefit from that, in addition to the renovations and payments toward principal.

Under the Network tab on BP there are lists of HMLs by state.

PM

Sure. PM me.

You're going to be paying points that will be fairly brutal for such a short term loan. Double close would be best.