Kansas City lenders with rehab inclusive loans?

3 Replies

Does anyone in Kansas city, Ks have a recommendation for a bank with a loan product that includes purchase and rehab? I've worked with Mid American in Lawrence that offers 10% down of the project cost, but will not loan outside of Lawrence. Has anyone used something similar in Kansas City or KC metro (Lenexa, Overland park, shawnee, Olathe)? Thanks!

Most of the banks I've talked to have been willing to loan on the rehab by putting the money in escrow and allowing you to draw on it. That being said, I've very rarely used this as we almost always do BRRRR refinancing. But here are some banks that we've had good luck with and I think would likely consider that:

- Fidelity Bank

- TriCentury Bank

- Bank 21

- Cornerstone Bank

@Andrew Syrios By putting it in escrow, wouldn't you then need to have the funds for the rehab? I am looking to do a BRRR, but do not have private financing for a purchase/rehab, hense wanting to include the rehab cost in the loan, which I could afford a down payment on, and refi out after. Or is this plan unrealistic?

Originally posted by @Chris Trupiano :

@Andrew Syrios By putting it in escrow, wouldn't you then need to have the funds for the rehab? I am looking to do a BRRR, but do not have private financing for a purchase/rehab, hense wanting to include the rehab cost in the loan, which I could afford a down payment on, and refi out after. Or is this plan unrealistic?

 They would likely give you the first draw up front for the rehab and then require invoices/pictures and the like to get the second draw. But either way, they'll only loan 75% (or so) of the purchase and rehab if you're going to a traditional bank. So you would need to have some money if you're going to use a bank to finance the purchase and rehab phase.