Is there a lender for SFR, needs rehab, holding as rental?

8 Replies

Where are you?  A lender that will do a long term mortgage to purchase a property for holding as a rental, but needs rehab?  Looking for a loan which includes purchase price and rehab, like a fix-n-flip loan, but want a long term mortgage instead of having to refinance after 6 months.

Do you exist?

Jonathan

Originally posted by @Jonathan Cronkite :

Where are you?  A lender that will do a long term mortgage to purchase a property for holding as a rental, but needs rehab?  Looking for a loan which includes purchase price and rehab, like a fix-n-flip loan, but want a long term mortgage instead of having to refinance after 6 months.

Do you exist?

Jonathan

 Hi Jonathan,

The product you're after is Fannie Mae HomeStyle. Most lenders (I'd say at least 4 out of 5) that do 203k will also do HomeStyle, but no one has heard of HomeStyle so 203k is what folks put on their websites. That should get you started on google.

More likely route would be to use a hard money lender to acquire and rehab the house and then refinance into permanent financing once completed and rented.  There are mortgage brokers and lenders out there that will provide one-stop shopping.  (They will pre approve you for the permanent loan and then hook you up with a hard money lender for the interim)

the issue is any long term loan that you get on the property would be based on the as is value and not the arv 

getting a construction loan with a 30 year note attached on an investment property  is a product I haven't seen Unless it's done on a refi 

Originally posted by @Jonathan Cronkite :

Hi Kerry!  Nice to talk with so.eone from Melbourne!  I Only found lenders that will do flip loans and then need to refi.  That seems to be the process. Which is twice the closing costs. 

 Jonathan

Did you try finding a lender that will do the HomeStyle Renovation product?  80% is the max loan to value for investor purchase on that product, but that probably similar to hard money. 

Stephanie