I have a house under contract. I'm set up to do a conventional loan with 5% down.
What ways could I get financing for the rehab part of the deal?
I am going to speak with banks tomorrow about home improvement loans and personal loans, anyone have recommendations?
Updated almost 3 years ago
I'm in the same boat. I've come across some appealing local and state government loans for financing home improvements in certain areas. These are low or no interest, some have interest only payments with the principle due upon sale or even forgivable after 5 years. These work for 1-2 unit owner occupied properties and would avoid the alternative of using FHA 203k and all the paperwork and headaches that come with that. The problem is you can't apply for these programs until after closing, so it puts you in a chicken and egg scenario. I'm also not going to go out and apply for new credit before closing on the property. What did you end up doing?