Anyone know of any good HML that will roll the closing cost into the loan?
Most hard money lenders that offer rehab loans based upon ARV will do this?
What area?
Ben,
Check out this thread.
http://www.reiclub.com/forums/index.php/topic,27883.0.html
A poster at the bottom is looking for an HML in Mississippi. Thought you may be able to help him.
If you are an investor (even if you're not) it's a good idea to buy real estate at a discount. If the place appraises for more than the loan, you should be able to get the seller to cover the closing costs through an addendum to the purchase agreeement called a seller credit.
If a HML wants the deal to be no more then 65% of the appraised value then the 65% includes everything. Everything meaning pay off for seller, costs of rehabbing, closing costs if you decide to roll them into the loan, and the first 6 months of mortgage pmts can be rolled into the loan if you want. HML will care that the total expenses of the loan amount isn’t more than the 65%. The only thing they won’t do is give you cash.
Most lenders will allow you to roll in the purchase price + rehab costs + closing costs (and in sum cases, monthly mortgage payments) as long as the sum total doesn’t exceed the max. ARV allowance (usually between 65-70).
Regards,
Scott Miller