If I’m rehabbing a home and get a hml for purchase and repairs. How do I use the money to do the repairs if I have to submit a draw request after the work is completed and inspected? If I had the capital to do repairs I wouldn’t need the loan. Am I understanding this correctly? Someone please help!
I too have the same problem. I have a $250K job going and due to overruns I have run out of cash. My draws are set up at about $20K but I can submit a lesser amount. It costs $100 for the inspector to come look at the work done. My HML actually allow me to draw $10K up front but that disappeared really fast. I had to borrow additional money at 36% interest to keep the job going. Depending on the size of your job and your HML you can get the same arrangement I have.
I have a HML and I am allowed to draw what I want each week if I choose.It cost $70 for the inspector to come out and If you submit your request by Tuesday you can have your money on Friday.I don’t know where you are but the company I used is Investors Mortgage Lending.
Thanks for all your input!
I’m in Florida and the hml I’m looking at is Pace Lending. They roll the cost of inspections in the loan. My concern is material cost to get started. If they do 10k up front I’d be find but website doesn’t say. I also looked at other hml for rehabbing and none seem to give you the money for repairs at closing but use a draw system. I need a better understanding of how this works. My options? Anyone have any advice?
I am also in Florida ( St.Petersburg).Go get a Lowes or Home Depot card so you can get started. Use the card only for you rehab cost.You wouldn’t need to make a draw until the card is full.