lending on rehabs - Posted by joe viljoen

Posted by brad on July 15, 2002 at 13:56:52:

there are different types of loans. the most recent one that i recieved was a construction loan. no payments for six months. no out of pocket expences. just fix it and sell it. i ended up getting 9k over sale price which was about 3k more than i needed. all i had to do was show where i had money in the deal and i had 500 holding the home.

lending on rehabs - Posted by joe viljoen

Posted by joe viljoen on July 14, 2002 at 16:25:07:

when a lender is willing to lend, say 80% on LTV ,am i allowed to pay closingcosts and loan service charges(for the months it takes to fixup and sell the property) out of this money too or do i have to come up with that monies myself ?

Re: lending on rehabs - Posted by Kim

Posted by Kim on July 17, 2002 at 16:14:13:

I think it depends on the lender’s policy. On the hard money loan I am currently getting, closing costs come out of the total amount loaned. If your selling price, rehab costs, their fees and the closing costs add up to the amount of the loan or less, you don’t have to come out of your pocket. If it adds up to more than the loan amount, you have to bring a check for the difference to closing. As for the debt service, they charge interest only for the first six months, P&I after, and you must pay that monthly fee (you can charge it to your credit card). Lots of the lenders have literature they will give you outlining their service. Just call them , and they will send it to you. Also, it pays to compare. Some give 70%ARV, some only 65%. Some charge 5% mortgage fees, some more, some less. Hope this helped.