Fixer-upper home loans Non occupied

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Are there loans out there for fixer-upper homes that are non occupied? I like the 203(k) loans but they require you to live there; I can't occupy two residence at once. I definitely would like to stay away from hard money lenders at first, because I'm new to real estate investing and nervous about the balloon payment I here about. Any suggestion will be greatly appreciated or article I can read to further my knowledge on this topic.   

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Thanks for the information I will look further into this type of loan.

@Adam Read Hey Adam, it's great to hear your curiosity to continue growing your real estate portfolio. Perhaps @Kevin Romines could shed some light on finding the right traditional lending program for you, as he's in that lending space and in your state. I'm not sure there are many other programs available for fixers other than hard and private money.

As a hard money lender/ and investor myself, the only key factor missing is knowing your exit strategy on your next project- which can determine the length of a hard money loan. 

Flipping the home would result in a faster sale, which would pay off the principal balance due to the hard money lender upon sale- most flips are complete within 4-6 months if you take on an easier rehab and price the property appropriately. Most hard money loans are interest only payments with a balloon payment due in 1 year. Some lenders even offer the ability to extend the term of the loan if needed.

If you plan to buy, renovate, and rent for cash flow, you'll want to ensure you can qualify for a traditional refinance within a few months/years of taking on the project. This is something a traditional lender can analyze with you before you even make the purchase. In this case, there are hard money programs with 2-3 year terms to accommodate this strategy as well.

Thanks for the mention @Eric Loya . Yes @Adam Read there are alternatives. The most competitive one from an interest rate standpoint is the Fannie Mae Homestyle Renovation loan. For a non-owner occupied purchase, its 85% LTV and if its a refinance, its 75% LTV, all with conventional rates.

Thank you @Eric Loya and @Kevin Romines for the very helpful information.  I will dive further into the Renovation loan and consider some hard money lenders with the new information you provided. I like to have as many tools in my arsenal to see what will make it a good deal.  Thanks again!

Best regards to you both. 

Originally posted by @Adam Read :

Are there loans out there for fixer-upper homes that are non occupied? I like the 203(k) loans but they require you to live there; I can't occupy two residence at once. I definitely would like to stay away from hard money lenders at first, because I'm new to real estate investing and nervous about the balloon payment I here about. Any suggestion will be greatly appreciated or article I can read to further my knowledge on this topic.   

Being "nervous about the balloon payment" means: "nervous about the deal's future value".

ie. If you are nervous about how good the deal really is, then why would you buy it?

"Balloon payment" really just means: that loan needs to be Re-financed on that future date. Another way of saying it is: The interest rate is only fixed for that period of time, and hopefully/likely, the same Lender will issue you out a new loan at that time, with new terms.

Are you feeling less nervous yet? [But as always: don't just take my word for it]. All the best...

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