Best way to finance a fixer upper...

[Carrie Whisel]

Hi!  I'm a current homeowner with approx. $150k in equity.  My husband and I are looking to buy a fixer upper from our city to rehab for our future primary residence.  We'd be paying for the property in cash but need approx. $150-200k to rehab the home.

What is the best way to secure the loan?

Would it be a HELOC, private lender, etc? I haven't been able to find the best answer when flipping for a primary residence.

[Erik Estrada]

Quote from @Carrie Whisel:

Hi!  I'm a current homeowner with approx. $150k in equity.  My husband and I are looking to buy a fixer upper from our city to rehab for our future primary residence.  We'd be paying for the property in cash but need approx. $150-200k to rehab the home.

What is the best way to secure the loan?

Would it be a HELOC, private lender, etc? I haven't been able to find the best answer when flipping for a primary residence.

If you are doing the rehab, HELOC is the way to go. There are no fees each time you draw. closing costs are often minimal, and the rate is similar to a hard money loan. Also you only pay interest on what you draw.