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.