Hello all, 

Purchase price: 200,000

Rehab: 50,000

All in: 250,000

ARV: 450,000

Here is a hypothetical example of a property, my question is if I need 250K ( 200,000 purchase price) ( 50,000) Rehab and I dont have much capital and I go to a lender and he tells me He can only loan me 90% of amount needed. Therefore 90% of 250,000 is 225,000. This means I need to put up 25,000 from my own pocket. So my question is, Can the lender loan the amount of the purchase price and the rehab budget combined? Since i need 200,000 to purchase the property and 50,000 to rehab it, does the hard money lender factor the rehab budget in the loan amount? 

Hey @Tarek Emam Yes some HML lenders will give you up to a 90% LTV on the purchase. Some will also lend you up to 100% of your renovation budget on a fix and flip. Hope this helps.

@Jason Shackleton

Thank you Jason!

@Tarek Emam

You can do a rehab loan which includes the purchase money and rehab money and go up to 110% of the ARV.

FHA 203k

Fannie Mae Homestyle

Freddie Mac CHOICERenovation

@Paul Welden

Thanks for the insight Paul! I’ll definitely look into that !