Can you add to your mortgage renovation cost?

Can you add to your mortgage renovation cost?

Warwick, NY · Member since 2015 · 7 posts · 0 votes
Hey All, I've been looking for a small multi family home. I found a triplex that needs some TLC. I will be financing my deal through a traditional 30 year mortgage. The home needs about $20K for repairs. Is it possible for me to get a loan for $20K more than the price the seller agrees to sell the home and at closing get a check either from escrow or a credit?
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Upen PatelPro Member
Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
9y

@Ryan Lauritsen What you are referring to is a rehab loan which would cover the purchase + rehab cost. For a 3-unit you can get a rehab loan ONLY if you are going to owner occupy it.

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  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    9y

    No.

  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    9y

    @Ryan Lauritsen What you are referring to is a rehab loan which would cover the purchase + rehab cost. For a 3-unit you can get a rehab loan ONLY if you are going to owner occupy it.

  • Investor · Tampa, FL · Member since 2017 · 122 posts · 87 votes
    9y
    FHA 203K, but ya, I think you have to occupy one of the units. Otherwise you need a commercial loan. Try to get a line of credit or unsecured personal loan for the rehab portion though.
  • CAD Designer · Garfield, NJ · Member since 2015 · 8 posts · 5 votes
    9y

    We did owner occupied with a FHA 203k streamlined loan built into the mortgage.

    Here is a link to more details I found from a google search: https://www.thebalance.com/fha-203k-loan-costs-and...

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