Conventional Loan

Lastly, land development requires solid planning and capital, so getting the right development loan with flexible terms will be vital for success.

Hey @Jaycee Greene, we typically get loans from smaller local banks.

Last minute they changed the deal to a mortgagee loan and cut the SOW from $65,000 to $40,000.

So I did a 3-2-1 buydown and secured a 2.875% interest loan for the first year of the loan, and it will gradually go up a percent each year until it hits my rate of 5.875%!

I’ve been working with several lenders for DSCR loans, but I’ve found that the fees are quite high, with minimal benefit in terms of lowering my current interest rate.

Some lenders do a periodic search of ownership records of all properties in their loan portfolio.  

This allows participating in the $1.1 M equity with a ROI of 100% and on going 25% annually with the historical appreciation over 30 years of 8% a year. ( Zillow stated a 10.4 % in the last 30 days $251,361 ).

It’s a beautiful old house and would be a real gem if it was restored, but I don’t have the funds or a credit score good enough to get a loan that big (without an insane amount of interest tacked on).I’m hoping to turn someone on to it who loves restoring old properties, or start investing in a group that does and tell them about my house and invest as a team.

Credit pulls for the same type of loan within a short window (usually 14-45 days) are treated as one inquiry, so your score should be fine.