BiggerPockets

Jasmine,
I would start by looking for some private money from family or friends, BP has a list of Hard money lenders that could fund your first deal; you should not have any problems finding short term money if your buying it @ a good discount. Good luck!

Brenden J ... I am bringing 25,000 to the table so I was thinking I could get a loan from somewhere, either a bank, credit union, or state program to purchase and I just use the 25,000 to reno.

Thanks J Scott. My credit is decent, & I was expecting to do just that, start visiting the really small (fewer than 3 branches), local banks in my area. I figure with about 25,000 or so, I should be able to get something from somewhere. Hope it works out!

Would you happen to know of any penalties for these types of banks if I sell the house in less than a year? Also, with the 70% of purchase + reno, how much do you think they would want down? I can bring the other 30-40% to the table.

They are investor loans, so there is no penalty for selling the property and paying off the loan early.

Also, with the 70% of purchase + reno, how much do you think they would want down? I can bring the other 30-40% to the table.

As an example, if you purchase a house for $60K and plan to do $40K in renovations, the total project would be $100K. A bank that will lend 70% will require you to bring $30K to the table. They may also require you to escrow some reserves.

Jasmine, I would suggest to go for a private money lender because banks documentations take a lot of time. They will ask for all kinds of documents from your pays lips to tax returns etc and with that there would be few restrictions too. whereas, a private lender can lend you with few days with 100% purchase price and rehab costs as well and there are few who will help you through the whole process as well. I guess BP's private money lender's listings is the best way to find a good lender.

jasmine, as i said in another post, first national, first federal, and new dominion are all local banks that are somewhat investor friendly....there should be no prepayment penalty..you can get them usually roll the rehab costs into a draw or 2 as long as you put down the 25-30% of purchase and rehab..but it'll take solid credit, good looking tax returns for a year or 2, money in reserves, and time

you're more than welcome to PM me anytime to discuss RE..i'd also recommend J Scott's blog on flipping house...it's pretty much the BP Bible of flipping houses

You will pay the price for a HML as well. If someone can find a bank willing to lend under the terms being discussed in this thread, I would much, much rather provide a lot of documentation than to pay 5 points at 15% for a HML.

Sure you can close faster with HM, but you definitely pay the price for it.