There is a lot of money to be made by buying and reselling real estate. People even love watching how professionals do it on reality television. If you are interested in the idea of starting this kind of business, you will need funds to buy a house and make the repairs. There is short term, and long term, money available. You just have to decide which of the fix and flip loans Seattle lenders offer is the best one for you.
For those without a lot of experience, a hard money loan could be a good choice. This will be a short term loan, usually one to three years, and the real estate is your collateral. With these types of loans lenders aren't so much concerned about how much experience you've got. They are most interested in the value of the property. A hard money loan will include your purchase and the repair costs.
Most lenders will offer from eighty to ninety percent of the loan to value. You have to repay it within three years. Interest runs anywhere from seven to twelve percent, and you will have to pay the closing costs and lending fees. These will cost an extra three and a half to fifteen percent.
Once you have some experience, and an inventory or real estate, under your belt, you might give the cash out refinancing strategy a try. You will be refinancing one home's mortgage to pay for another property. This works well for those paying all cash for a house or needing the money for a down payment on one.
Lenders will approve up to three quarters of the loan to value for a cash out refinancing package. You can spread it out over fifteen to thirty years at an interest rate of three to five percent. Closing costs and lender fees average around five percent. You will have to have a credit score of at least six forty.
Home equity lines of credit are another means of getting money for purchasing an investment. A line of credit, which works a lot like a credit card, can only be issued to an owner occupant on their primary home. One of the nice things about a line of credit is that, once it's approved, you don't start paying interest until you start drawing the money.
If you are in the market for a primary residence, but are looking for one that needs some renovation, you can apply for a thirty year permanent loan with an FHA 203 rehab loan added to it. The amount you can get for renovations is limited however. You will also be required to follow HUD's list of allowable repairs.
It is possible to make a lot of money flipping houses. You have to know what you're doing however. It takes experience to find a house that can be repaired and sold for a quick profit. It also takes experience to understand which loan works best for a particular situation.
For those without a lot of experience, a hard money loan could be a good choice. This will be a short term loan, usually one to three years, and the real estate is your collateral. With these types of loans lenders aren't so much concerned about how much experience you've got. They are most interested in the value of the property. A hard money loan will include your purchase and the repair costs.
Most lenders will offer from eighty to ninety percent of the loan to value. You have to repay it within three years. Interest runs anywhere from seven to twelve percent, and you will have to pay the closing costs and lending fees. These will cost an extra three and a half to fifteen percent.
Once you have some experience, and an inventory or real estate, under your belt, you might give the cash out refinancing strategy a try. You will be refinancing one home's mortgage to pay for another property. This works well for those paying all cash for a house or needing the money for a down payment on one.
Lenders will approve up to three quarters of the loan to value for a cash out refinancing package. You can spread it out over fifteen to thirty years at an interest rate of three to five percent. Closing costs and lender fees average around five percent. You will have to have a credit score of at least six forty.
Home equity lines of credit are another means of getting money for purchasing an investment. A line of credit, which works a lot like a credit card, can only be issued to an owner occupant on their primary home. One of the nice things about a line of credit is that, once it's approved, you don't start paying interest until you start drawing the money.
If you are in the market for a primary residence, but are looking for one that needs some renovation, you can apply for a thirty year permanent loan with an FHA 203 rehab loan added to it. The amount you can get for renovations is limited however. You will also be required to follow HUD's list of allowable repairs.
It is possible to make a lot of money flipping houses. You have to know what you're doing however. It takes experience to find a house that can be repaired and sold for a quick profit. It also takes experience to understand which loan works best for a particular situation.
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When you are looking for the facts about fix and flip loans Seattle residents can visit our web pages online today. More details are available at http://www.privatecapitalnw.com/fix-and-flip-rehab-loans now.
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