Looking for financing - perfect credit but not much cash

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I'm curious as to which sources should I be looking at for obtaining financing on my first flip. Fortunately, I have excellent credit (765 fico), but my meager $60,000 salary doesn't leave much left over after paying for the mortgage, car, insurance, student loans, retirement, etc.

I won't have more than a few thousand dollars to part with which I'm sure will go towards closing costs. Keep in mind that I do have an emergency reserve fund of ~$10,000 cash that I'd rather not touch, but it's there in case something takes a turn for the worse.

In a perfect world, I'd like to get a loan for the price of the house AND the cost of repairs. Am I crazy to think that a loan like this exists?

Thanks so much for your advice!


The type of loan that you would be looking for would be a rehab loan. Rehab loans are based upon the after repaired value (arv) and can fund the purchase, fix up, costs, and some times payments.

Cheapest source to find these funds would be small local banks where the property is located. Speak to the commercial loan office who does rehabs. You may need to call more than a handful to just get one who says they will work off the arv and not need anything down.

Othere sources for rehab money would be using a hard money lender. They are quicker than banks, less documentation, but higher interest and costs.

With your score you should have no problems finding financing on these.

Another alternative would be to use 100% financing (of just the purchase price) through a conventional lender. However, this leaves you with paying for the repairs. Do you have a heloc on your primary property or equity to open a heloc?

My recommendation would be to speak to a mortgage consultant that specializes in these types of investment loans.