Zillow Advice: Mortgage Types - Advice on Hard Cash Loans for Rehab properties http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ Zillow Advice | Zillow Real Estate Hard money loans can be risky ... http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ Hard money loans can be risky because they generally charge a lot of points/fees and have a high interest rate compared to conventional financing. &nbsp;<br/><br/>If you currently own a home and have equity, consider pulling a HELOC, which is more flexible and usually has a lower interest rate. &nbsp;Many banks and credit unions offer no-fee HELOCs.<br/>&nbsp;<br/>That being said though, using hard money loans can still pencil out if the numbers make sense. Mon, 21 Apr 2014 01:00:00 GMT http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ 2014-04-21T01:00:00Z Homestyle allows 85% LTV ... http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ Homestyle allows 85% LTV for investors: &nbsp;<a href="https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf" rel="nofollow">https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf</a> Thu, 02 Jan 2014 19:05:00 GMT http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ 2014-01-02T19:05:00Z Do you have 25%, of the improved ... http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ Do you have 25%, of the improved value, for the down payment on your next project?<br/><br/>Look into Fannie Mae HomeStyle Renovation Loans. Maximum Investor LTV is 75%. Tue, 24 Dec 2013 02:44:00 GMT http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ 2013-12-24T02:44:00Z I currently have 2 properties ... http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ I currently have 2 properties financed. I would still be on active duty for the first few rehab projects. I have another year plus on my contract with the Air Force. My hopes were to start my first project in the spring of '14. Tue, 24 Dec 2013 02:30:00 GMT http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ 2013-12-24T02:30:00Z If your only source of income ... http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ If your only source of income is flipping, it will be a problem.&nbsp; You will need the income to qualify for the mortgage.&nbsp; The biggest catch is that we currently limit the # of properties a buyer can have financed to 4.&nbsp; Tue, 24 Dec 2013 02:12:00 GMT http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ 2013-12-24T02:12:00Z Thanks Andrew. I didn't realize ... http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ Thanks Andrew. I didn't realize this type of financing existed. All my research leads me to hard money loans for Rehab-to-Sell Loans. I've done 4 rehab projects thru conventional home lending because these were houses I occupied. I'm looking at doing a career change (active duty military for the last ten years), and I want to get into this business, but I understand that getting the financing is the biggest hurdle. I'm confident in my ability to find the deals and contract the work. All of my properties are making me good money in the rental market, and I've walked many co-workers through the same process to help them make money. Now I'm anxious to take this on full time. My credit score is solid, but I worry that my lack of official experience is going to keep the door to financing closed. Tue, 24 Dec 2013 01:49:00 GMT http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ 2013-12-24T01:49:00Z Renovation loans do not have ... http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ <p>Renovation loans do not have to be owner occupied, Investor Renovation loan programs exist.</p> Tue, 24 Dec 2013 01:37:00 GMT http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ 2013-12-24T01:37:00Z You can obtain conventional ... http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ You can obtain conventional renovation financing.&nbsp; You don't have to get a hard money loan.&nbsp; Tue, 24 Dec 2013 01:28:00 GMT http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ 2013-12-24T01:28:00Z Hard money loans are good ... http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ <div style="text-align: left;">Hard money loans are good for SHORT term...that's it. Are you looking to fix &amp; flip or rehab a home to live in? Most hard money loans are going to have high interest rates and short terms with a ballon payment at the end. If you are in and out quick, then it won't matter. But, if you take too long renovating/selling your project, then you eat into your profits. Maybe you can find someone with the cash to partner with. They put up the money and you find &amp; flip. At the end of the day you can split the profits 50/50. If you are successful a couple of times, then you can use your own money and keep 100% of the profits.<br/><div style="text-align: left;">If you are looking to rehab a home to live in, then there are good renovation loans for that as well (for a primary residence). If that is what you are after, just reach out to someone like Andrew here for details on those loans.</div></div> Tue, 24 Dec 2013 01:16:00 GMT http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ 2013-12-24T01:16:00Z a consumer perspective...Would ... http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ a consumer perspective...<br/><br/>Would it help if I told you I had my escrow on a new construction by a spec builder held up&nbsp;by a hard money lender who decided&nbsp;to prevent&nbsp;closing on houses 1-thru-3-of-6 until he got the payoff restructured? If I told you I&nbsp;watched&nbsp;the&nbsp;spec-builder lose properties 4-5-and-6 to&nbsp;said hard money lender? Who then froze all construction on those 3 houses until&nbsp;the buyers of those 3 houses (who were already in escrow with agreed-upon-prices) agreed to substantial bumps in sales prices?<br/><br/>I've only had one close encounter with a hard money lender, and I was very glad that it was as an incredulous bystander. Houses 1-thru-3 got to close on the original terms (after a slight delay), houses 4-thru-6 got nicked for an extra&nbsp;10%-15% per house, and the spec builder got bupkis. Tue, 24 Dec 2013 01:13:00 GMT http://www.zillow.com/advice-thread/Advice-on-Hard-Cash-Loans-for-Rehab-properties/522337/ 2013-12-24T01:13:00Z