Funding a Fixer Upper

[Scott Vaeth]

If a fixer upper only qualifies for a renovation loan instead of a traditional conventional, do I have to fund the construction costs through the loan? I'm wondering if I can fund the construction costs via cash to bring the house up to livable standards that way I'm borrowing less. 

[Logan Singleton]

Hi Scott, Will you be living in the property, or is it for investment purposes? I ask because if it's for investment purposes, I would look at a bridge-type loan, which will finance up to 90% of the purchase and 100% of rehab costs for 1-4 unit properties. These are 12-month-interest-only loans. Once the property has been stabilized with a tenant in place, you can refinance into permanent financing.