Renovation Loans in Detroit
Looking to get info if its possible to get a Renovation Loan in the Detroit area? For example: Say I find a property that is $30-40k and needs another $30k in work. After fixing it I would then like to rent it out and get tenants in place, and then refi to a conventional loan without doing any cash out. Is this at all possible? What are the rates usually on such loans?
Most Popular Reply
Assuming the property will be non owner-occupied...
"Is this at all possible?"
If you choose to go the HML (hard money lender) route, then you may run into some loan minimum issues.
Many HMLs have loan minimums ranging from 50k-100k.
"What are the rates usually on such loans?"
Right now, a reasonable estimate is a low double-digits interest rate (say 11%-14% for example) with a few origination points (say 2%-3% for example).