We are looking at our first BRRRR. We have excellent credit etc. and I'm looking at buying with a conventional loan 80/20 and was going to hit up friends/family etc. for loans to cover the 20% DP and rehab/closing costs, then refi at 6 months to take the cash out and repay them. We are only going to buy a place that we'd get a lot of sweat equity for the refi.
Today I just discovered the Signature Loans from credit unions at 8-10% which is better than I was going to give to my investors and is much better than local private lenders who are starting at 12%-16%. The terms I'm seeing for the Signature Loans are like up to 5 years with monthly payments at a low APR.
This seems pretty slam dunk and I'm wondering if anyone has any experiences with this. Am I missing a big down side (not including it being debt)?
Thanks in advance.
Seem to recall these are like the 125%, stated income loans of 2008. These were major contributors to the mortgage industry meltdown. If you can get one, the choice is yours.
BTW: "was going to hit up friends/family etc. for loans to cover the 20% DP/closing costs "would not be allowed in a standard conventional loan, The rehab money might be acquired after COE.
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