Reusing the same loan?

Question

In the case of a conventional 30 year loan used to purchase a house for flipping purposes. Can you simply re-use that same loan when you successfully flip a house for the next house? In order to not hurt your credit score as badly?

James Lindsey · Answer

good points

Wayne Brooks · Answer

Do you understand that the FHA, and likely the conventional loans, you are talking about are for owner occupant only, and you'd have to reside in the home for at least a year?  Also, the only the lender is covering part of the closing costs (not all of it) is if they are charging you a higher interest rate (so they can sell the loan for more), which may or may not be a good deal for you.

James Lindsey · Answer

I was looking into a fnma or fha. Although there are several conventional loans that I qualify for that my bank would cover the closing costs which could be handy.

I asked this out of more curiosity than anything.

Charlie Fitzgerald · Answer

It won't hurt you.  Out of curiosity, what type of loan are you getting?

Wayne Brooks · Answer

Paying on loans helps your credit score.  Having too much debt at the same time hurts your credit score.

James Lindsey · Answer

I have always been told that your credit score get steadily worse with each loan you open up, even if you've paid the loan off each time.

Wayne Brooks · Answer

No.  Not sure why you think that paying off that loan, then having to get another later would hurt your credit score.