Do rehab lenders require good credit score? - Posted by dale green

Posted by John Corey on June 17, 2006 at 14:43:58:

It depends on what you mean by a ‘rehab lender’.

If you want a higher LTV and lower financing costs assume you will need decent credit, cash and assets.

If you have a great deal and only need a lower LTV you can go the hard money route. Expect to have higher financing costs as the trade-off (plus the lower LTV).

You and the property are a risk to any lender. You need to expect there is a trade-off. Lower LTV and a higher credit score means fewer questions and lower costs. Higher LTV, weak credit score and the lender needs to charge more or cap what they will fund.

John Corey

Do rehab lenders require good credit score? - Posted by dale green

Posted by dale green on June 17, 2006 at 12:23:44:

Hi everyone.

I was hoping someone could help me with this question.

I am trying to buy a house, rehab it and flip it. I have no collateral at this time

Here’s my question:

Do rehab lenders require me to have a good credit score, certain amount of time on job or collateral in order to get money to purchase the home and money to repair it?

Any help in explaining how this works would be greatly appreciated!

thanks

dale