1st Homestyle Reno Loan

[Kacey Betts]

I was thinking this was a good idea because it gets the plumbing replumbed and inside rehab. I'm getting 35k on top of a 500k loan. original purchase price was 545k so I got the seller to come down to 500k and do the roof and concessions. I'm going to put 25k for down payment. It is a 2/2 duplex with detached 2 car garage in the prime desired neighborhood, new condos and townhomes being built everywhere. My question is, do you think this the best way to go about it with the Homestyle Reno Loan so I would have the 35k in capital to do all the Reno.

[Vijay Friedman]

Quote from @Kacey Betts:

I was thinking this was a good idea because it gets the plumbing replumbed and inside rehab. I'm getting 35k on top of a 500k loan. original purchase price was 545k so I got the seller to come down to 500k and do the roof and concessions. I'm going to put 25k for down payment. It is a 2/2 duplex with detached 2 car garage in the prime desired neighborhood, new condos and townhomes being built everywhere. My question is, do you think this the best way to go about it with the Homestyle Reno Loan so I would have the 35k in capital to do all the Reno.

@Kacey Betts
It sounds like you've negotiated a solid price reduction already. Before deciding on a renovation loan, I'd make sure the renovation budget is realistic and understand how the draw process, contractor requirements, and contingency reserves work. Those details can have just as much impact on the project as the loan itself. Wishing you the best with the duplex!