Need advice on a loan for renovations/construction

[Austin Johnson]

I am in the process of purchasing a multi family property. It's an all cash deal and will not carry a mortgage. I would like to do major renovations to the property and would like to fund the project with debt. A major bank already informed me that they would not give us a loan for a construction project.

Can anyone advise me on some options? 

On one of the podcasts I heard about a 203k loan. Does anyone have any insight into this? Do I need an initial mortgage to qualify for the 203k loan?

Any advice would be greatly appreciated!

[Brandon Reed]

Hey Austin...for the 203k loan...that requires you to have an initial mortgage, as you said. That loan is for homeowners who want to "bundle" the home mortgage and the rehab loan into one package.

I don't have good direction for you regarding a good loan for the rehab. But hopefully the insight on the 203k loan was helpful.

Best of luck!