I want to move-in, rehab and then cash-in

My wife and I are thinking about buying and moving in to a house that needs some fixing, fixing and then cashing in. What kind of financing should I seek? Were in Connecticut.

Thank You

Well if the equity is there you can use HML or you can get a rehab construction loan from a lender.

After you fixed things up you can get a cash out refi loan and walk with the cash

what is important to do is be sure to keep track of your bids and reciept of repair because the lender want to make sure that you really have done the repairs and that the value is justified by the repairs and plus that way you can get a no-seasoning cash out refi even if you have only had the property for 3 months

Doing it as an Owner Occupied you can have a higher LTV and better interest rates and you are buying a home that you can fix up the way you like and make it a Home Sweet Home. :smiley:

Thank you Laura for reponding.


Be careful if you are planning to live in the property.

I don’t know if it is law or not in my state, but I do know that when I use HML loans I have to explicitely state that I am using the money as working capital and not planning to occupy the home.

I have never asked if this is lender policy, or state law (usary avoidance) etc. Just something to be aware of.