Which would you choose?
Subject Property: ARV $120,000. Purhcase price: $75,000. Rehab: $18,000
Lender A: 9.99% w/ 3 points, loan is 70% of ARV . Requires standard closing costs plus $35,200 cash reserves to close deal.
Lender B: 12% w/ 3 points, loan is 70% of ARV. Only requires the normal closing cost associated with closing a property.
I have two different lenders that I am choosing between. Lender "A" wants me to have $35,200 in cash reserves to close the loan. Which I do, but I think that is a little absurd consider I have an excellent credit score.
I would prefer to use my cash to fund multiple deals and not have a majority of it tied up for 3-4 months.
What are your thoughts? Which lender would you use?