My husband and I are looking into flipping homes in South Florida. We are very confused about financing and mortgages. A friend told us that an interest only loan would be the best way to go in flipping.
We currently do not have any income, but we do have over $500,000 in savings and assets. Will we be able to get a low interest rate with no money down? How do we go about this? Also, when talking to Lenders regarding financing, do we tell them it is for investment purposes even if we intend to live in the property while fixing it up (approx. 3-6 months) ? Thanks for all of your help!
well since you have no income…your probably looking at a no doc loan with rates at about 7 with 10% down i believe…i don’t know if you can do a no doc interest only…one of the mortgage guy’s should be able to tell ya… what part of fla you from.? . what part you looking to flip? …
Your friend was right about the interest only loan as it helps with your cash flow.
However, depending on your credit scores, it will be tough to get a 100% Interest Only NO DOC Investment property loan.
You would not have to go No Doc. You may just want to go NIV (No Income Verification) or SIVA (Stated Income, Verified Assets)
There are a variety of options available in the market place. You just need to do your homework/research or find a good broker that can do it for you.
Thank you for all of your help! We currently own a home in Charlotte, NC which we will rent out while in Florida. We are looking to flip properties in either the Fort Lauderdale (Broward) area or Miami (Dade) area. Do you know which area is best to concentrate on? My credit is spotless, my husband has been late on a credit card, but his credit looks to be pretty good.
Then you shouldn’t have any problems getting the deal done.
As for the best market, maybe someone else reading this post could assist you.