Do I get one loan to cover the cost of buying the house and the rehab. Do contractors want all the money up front or can you pay them over time with installments?
NEVER pay for work that's not done. Having said that, if the contractor you're using's a little guy, you may have to give him a certain small percentage up front to get him started, but after that, it's as work is finished that he gets paid. And, yeah, one loan to cover everything.
When you get a rehabb loan, the bank will pay the contractor in installments. They will go out and make sure the work is completed before more money is released.
Fannie mae does offer a rehabb loan up to 90% of the ARV on investment properties.
You need to go your broker, banker, or lender to see if they do these types of deals. If not call everyone in your local phone book. They are available nationwide
Quote:
On 2004-04-15 11:00, tinman1755 wrote:
When you get a rehabb loan, the bank will pay the contractor in installments. They will go out and make sure the work is completed before more money is released.
Fannie mae does offer a rehabb loan up to 90% of the ARV on investment properties.
You need to go your broker, banker, or lender to see if they do these types of deals. If not call everyone in your local phone book. They are available nationwide
Lori
Lori - Are you sure about this 90% ARV Program??? I have heard of a similar program but that's only for OWNER OCCUPIED properties, not investments. CHeck your sources and get back to me on that. If that's still the case - can you get me the name and number of a broker that will do this for me?
YES, I'm sure of this, I have been in financing since 1987. these deals are nationwide. NO, I cannot look up brokers,bankers, agents, or anyone else for you. I am telling you I have closed on 12 of these deals this year, in 8 different states. I can tell you what is available but you must find someone in your area that does these loans. I know that they can be done in NJ, because I did 3 of them in DEC. 2003.
We are not allowed to advertise or give people information on this site or they will but you in jail.
If you call every number inthe phone book I'm sure you will find someone.
Lori is right. I got one too, but with 75% of purhcase price and rehab cost. Fannie Mae requires you to have credit score of 680 (I believe so), most cases less than 45% DTI, and two years of exprience being a landlord, and have rental loss insuracne for all the investment properties that you own to get up to that high of LTV. I had no intention of being a landlord at this point or having rental insurance, so the highest I could go was 75% LTV of purhcase price and rehab cost.
Quote:
On 2004-04-16 10:40, SmileyFace wrote:
Lori is right. I got one too, but with 75% of purhcase price and rehab cost. Fannie Mae requires you to have credit score of 680 (I believe so), most cases less than 45% DTI, and two years of exprience being a landlord, and have rental loss insuracne for all the investment properties that you own to get up to that high of LTV. I had no intention of being a landlord at this point or having rental insurance, so the highest I could go was 75% LTV of purhcase price and rehab cost.
Fannie Mae and Freddie Mac Loans are not based on credit scores. They are based on risk factors. as far as debt ratio that too is a myth. I just had one close at 58% debt ratio. Again everyting with fannie mae is calculated on risk.
NEVER pay for work that's not done. Having said that, if the contractor you're using's a little guy, you may have to give him a certain small percentage up front to get him started, but after that, it's as work is finished that he gets paid. And, yeah, one loan to cover everything.
When you get a rehabb loan, the bank will pay the contractor in installments. They will go out and make sure the work is completed before more money is released.
Fannie mae does offer a rehabb loan up to 90% of the ARV on investment properties.
You need to go your broker, banker, or lender to see if they do these types of deals. If not call everyone in your local phone book. They are available nationwide
Lori
[addsig]
Quote:
On 2004-04-15 11:00, tinman1755 wrote:
When you get a rehabb loan, the bank will pay the contractor in installments. They will go out and make sure the work is completed before more money is released.
Fannie mae does offer a rehabb loan up to 90% of the ARV on investment properties.
You need to go your broker, banker, or lender to see if they do these types of deals. If not call everyone in your local phone book. They are available nationwide
Lori
Lori - Are you sure about this 90% ARV Program??? I have heard of a similar program but that's only for OWNER OCCUPIED properties, not investments. CHeck your sources and get back to me on that. If that's still the case - can you get me the name and number of a broker that will do this for me?
Thanks,
Matty Kling
YES, I'm sure of this, I have been in financing since 1987. these deals are nationwide. NO, I cannot look up brokers,bankers, agents, or anyone else for you. I am telling you I have closed on 12 of these deals this year, in 8 different states. I can tell you what is available but you must find someone in your area that does these loans. I know that they can be done in NJ, because I did 3 of them in DEC. 2003.
We are not allowed to advertise or give people information on this site or they will but you in jail.
If you call every number inthe phone book I'm sure you will find someone.
Lori
[addsig]
Lori: With regards to the 90% ARV.. does the property qualify for the loan or does the person have to qualify?
Both must qualify
Lori
[addsig]
Lori is right. I got one too, but with 75% of purhcase price and rehab cost. Fannie Mae requires you to have credit score of 680 (I believe so), most cases less than 45% DTI, and two years of exprience being a landlord, and have rental loss insuracne for all the investment properties that you own to get up to that high of LTV. I had no intention of being a landlord at this point or having rental insurance, so the highest I could go was 75% LTV of purhcase price and rehab cost.
Quote:
On 2004-04-16 10:40, SmileyFace wrote:
Lori is right. I got one too, but with 75% of purhcase price and rehab cost. Fannie Mae requires you to have credit score of 680 (I believe so), most cases less than 45% DTI, and two years of exprience being a landlord, and have rental loss insuracne for all the investment properties that you own to get up to that high of LTV. I had no intention of being a landlord at this point or having rental insurance, so the highest I could go was 75% LTV of purhcase price and rehab cost.
Fannie Mae and Freddie Mac Loans are not based on credit scores. They are based on risk factors. as far as debt ratio that too is a myth. I just had one close at 58% debt ratio. Again everyting with fannie mae is calculated on risk.
lori
[addsig]