New to investing. Need to finance rehab. Let’s say the house is selling for 100K. If it’s appraised for $180K , can I request a loan for $140K and ask for 40K cash?
What kind of loan it would be?
Your input is greatly appreciated!
Thanks
The highest most HML’s will go is 70% of appraised value using their appraiser. That would mean on an appraised value of $180,000, they would loan $126,000 at 13-14% with 2-5 points.
WELL…A BIT BETTER. UP TO 125% OF AFTER COMPLETION VALUE ON RENOVATION LOAN AT A MORE COMPETETIVE RATE.
However…in extension to the above message. As to most rehad loans there are high LTV’s however it is on a score driven and asset based loan. If you don’t have those things you are looking at low LTV’s and high rates. None of which is really what anyone wants.
Tara Callegrari