Equity Line on a Rehab property

Financing, Hard Money Lenders, Private Money
1

I looked at a house that I think I can buy for 70% of the FMV. If I did I will flip it. My HELOC question is, If I buy the property for 70% of the FMV can I get a HELOC on the property right away so that I can use the money to fix and sale it?

Thanks
auggflo

2

Actually with a HML you can get the funds for the rehab included.

The lender will set up an escrow to disburse these to you.

Typically you can get up to 65-70% of the AVR (after repaired value)

I have never heard of a lender that will do a 2nd or heloc on a proprety that needs work. If the work is just cosmetic and can pass normal underwritiing guidelines, that may be ok. Then your only concern is just the seasoning requirement. Will post additional info on that for you soon.

3

First, why do you need a HML? Do you know your credit score/situation?

Second, what is the loan size of your purchase price? or FMV?

How much rehab is needed?

Have you looked at your options with the seller?

Such as utilizing the properties equity as your source of downpayment/earnest money?

Also, what state are you purchasing in?