Good Evening BP community,
Just had a simple question , which is ..... Is there a way to add X amount of dollars to a Conventional Loan, if you are buying a property as an Investor ?
So if I am wishing to purchase a property as an Investor and put 20% down, but the house is in need of some repairs / upgrades ..... Can you add to the Loan a certain amount for the Repairs/upgrades
Do you have to pay for any and all repairs out of your own pocket ?
Thanks so much
Yes, you can get a reno loan as an investor. There aren't a lot of people that are familiar with this type of loan, so I would recommend finding a mortgage broker that has experience with it.
I financed my rental house with a reno loan, 25% down. It was a pain (it took 4 months to close), but it was the only way to make the numbers work.
Hi Brianna H.,
Thank you for your reply
So the loan you are talking about is called a " Reno Loan " , simple as that ? :)
I noticed you said that you had to put 25% down vs the standard 20% .
Is this one of the stipulations with using a Reno loan .... the extra 5% that you have to put down ?
And can you use this type of Loan on all property listings ( those found on HUD and HomePath ) ?
Is there a Maximum and or minimum amount associated with using a Reno loan ?
hanks again, I really appreciate your help
@Michael Dunn Most often people will use a hard money loan for the purchase and repairs, the refi into a long term rental loan.
If you have excellent credit and patience, sometimes you can do it with a single loan.
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