Flipper/Rehabber · New York, NY · Member since 2018 · 75 posts · 6 votes
I would like to start flipping houses but i don't have the money to start off. I was thinking can i get a mortgage and start flipping or bank home loan doesn't allow that?
Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
8y
You can get a loan for the purchase as long as you can come up with the down payment. If you live in the house yourself while you are working on it, you can qualify for owner occupant terms, which are more favorable.
Killeen, TX · Member since 2017 · 120 posts · 51 votes
8y
@Catherine Morel you could go the fha 203k loan rout where you would get good rates just like dawn said then use the 203k loan to put repairs into the property.
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
8y
Just know that a FHA loan is low value to most sellers, it's a LOT of paperwork. The positive for you the buyer is the low down payment. With that said, if you go regular FHA the house needs to be near perfect. The 203k like mentioned works, but you need to find a contractor willing to work with you. The scope of work for the job needs to be very detailed, you also don't get the full amount as they hold some back as contingency.
With any FHA loan, you will need to live in the house at least one year as your primary residence.
If you have no history it's going to be harder to get a loan and require you to put more down depending on the condition of the house. Bigger the project, bigger the risk, bigger the requirements...