Am I making this to complicated regarding sizing up a property? I have one lender that I can use a "cross collateral" loan, meaning using the equity in my house as equity and he will finance the entire purchase. I just need to come up with rehab costs etc. That and make sure I can get out of this interest only 1 year loan.
Then I have another that is 15% down and will refund me all rehab costs. I guess I need two spreadsheets with each scenario trying to determine which to go with? Do most of you go with one lender once you are comfortable with them?
Hey @Jesse Kerr ,
I always recommend having a primary lender. Think of it as a 'go to' lender, but it is good business to shop around and continually make connections with others in the industry. You never know what kind a deal you may be able to strike in which your primary may not be able to offer.
V/R - Troy
@Jesse Kerr , if you have the 15% (ie. enough for the rehab cost or deposit), then both options could be viable, depending on other terms not mentioned yet. As always, the important point is: Are you buying a real "deal"?
Are you saying that the first option requires you to refi out of an interest-only loan after just one year, but perhaps the other option doesn't? In my mind, that puts the second option in front of the first, given that you might prefer the timing of the future sale of the property to be more in your control than your Lender's? Just sayin'...