Having Trouble Finding A Loan For A Rehab Rental

Member since 2024 · 2 posts · 0 votes

Hello, I'm currently a home owner and have been trying to figure out how to turn my house into a rental. I have a very good interest rate and will most likely take out a HELOC out to finance a rehab rental. I'm getting stumped on how to get a loan that works. FHA means I would have to live there 2 years and HML payments are higher than I can afford. Any help would be appreciated.

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Michael DohertyBusiness Member

Real Estate Agent · West Hartford, CT · Member since 2016 · 449 posts · 476 votes

Hi Mel - Have you got in touch with an experienced lender? They should be able to help you strategize what will work given your current situation and qualify you appropriately.

Also, FHA you only have to live in the home for one year. You may also qualify for a low down conventional loan. HML are for short term purposes and you'd generally want to refinance out quickly.

I’d recommend reaching out to @Ryan Deasy for your lending needs.

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Michael DohertyBusiness Member
Real Estate Agent · West Hartford, CT · Member since 2016 · 449 posts · 476 votes
2y
Hi Mel - Have you got in touch with an experienced lender? They should be able to help you strategize what will work given your current situation and qualify you appropriately.

Also, FHA you only have to live in the home for one year. You may also qualify for a low down conventional loan. HML are for short term purposes and you'd generally want to refinance out quickly.

I’d recommend reaching out to @Ryan Deasy for your lending needs.

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Judith Aguilar
Member since 2023 · 21 posts · 5 votes
2y
@Mel Gardner Hi Mel, Transitioning your home into a rental property can be a smart move for building passive income! You might want to consider conventional or investment property loans for better terms. I' recommend @Ryan Deasy

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Brittany MinocchiBusiness Member
Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
2y
Hey Mel -
What type of loan do you currently have on your property? If FHA, you'd likely need to go conventional with the next one. If not FHA, you could use it for your next purchase and the owner occupancy requirement is 1 year, not 2 as you mentioned. You may want to consider buying something ready to move into instead of a rehab project just to make it a bit easier on yourself, especially if funds are tight.
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