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!
Provided your credit scores are high enough you can apply for a “No Doc” loan, which means there is no reference to your income. The rate will be a little higher but much less than a HML.
I.O. is a good way to go for short term financing as it keeps your payments low. This could be important if your project runs over your timeline and you have to make additional mortgage payments.
If you really do intend to occupy the property you are telling the truth if you say it’s your primary residence. This will get you significantly lower rates than an investment property loan.
Feel free to e-mail me with other questions
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