Interested in purchasing property and rehabbing. My friend and I are wanting to buy property and fix it up but the problem is financing. We know of good deals but can’t buy the property due to no financing. She is experienced in flipping properties on the other hand I am not and have challenge credit. Please send names and numbers of companies that can help. Thanks
You make a post asking for money but you give absolutely no information about what you are offering or any information that a lender would want to know.
Where are you located?
What type of deals are you looking at?
What is your exit strategy?
What financing terms are you looking for?
How much money do you have to invest in yourself?
How many deals have you done and how successful have you been?
You have to do more than just say I want money. Everyone does and everyone thinks there are many good deals out there. Reality is different.
Eric3 is right on the mark, you have to give us details so we can give your best options based on the details.
Here are some basics, there are rehab loans in which the lender generally has a min. middle credit score of 640 or better. This rehab financing if done correctly can cover virtually all of the purchase, the complete rehab and all closing costs based on the ARV after repair value. On a case by case basis, the loan will also cover the monthly mortgage payment for a 6 to 12 month term.
There are hard money lenders which dont really care what your credit scores are, but your going to need a min. of 10-20% down on these and possibly some owner carry back as well. Generally these lenders are 60-75% LTV so the difference is on you. Their rates range from 10% to as high as 15% and points tend to run 2-10 points plus some closing costs.
Conventional Channels include FHA203K so long as its owner occupied. The beauty of this program is that its 3.5% down of the purchase price plus repairs, all at super low fixed rates. High 4% to low 5% these days. USDA will do a 102% financing including some small repairs in rural areas, again it must be owner occupied, but this loan doesnt have mortgage insurance like FHA, Fannie, Freddie do, so its a better loan in some respects, and the rates are very comparable as well.
I hope this gives you a real rough idea of what is available? Good Luck
All rates quoted are APR’s