I read alot of great advice on how you should buy the property with an LTV of around 65-70%LTV but if that is the salesprice the bank will treat this as 100%financing, is there anyway around this and do you refi right away and pull the cash out?? and if you do that won’t there be seasoning issues??
please advise and thanks in advance.
Howdy Movistar:
Some lenders will loan 100% of the costs without seasoning questions depending on your credit. I use hard money lenders to do rehabs and they loan 95% of the total project as long as it is below 65% to 70% LTV based on the after repaired value. I just did a $725K building where my total costs will be $440K and I had to come up with $30K that I borrowed on a second mortgage against the property. Zero down for me except the earnest money of $500 and the appraisal of $1600.