There is a lot of money to be made by buying and reselling real estate. People even love watching how professionals do it on reality television. If you are interested in the idea of starting this kind of business, you will need funds to buy a house and make the repairs. There is short term, and long term, money available. You just have to decide which of the fix and flip loans Seattle lenders offer is the best one for you.
A hard money loan can be a good choice if this is one of your first rehab projects. With this loan, you are securing the debt with the real estate and only borrowing the money for one to three years. Lenders are more concerned about the value of your property than how much experience you have. When you get one of these loans it covers the purchase of the property and the cost to repair.
Most lenders will offer from eighty to ninety percent of the loan to value. You have to repay it within three years. Interest runs anywhere from seven to twelve percent, and you will have to pay the closing costs and lending fees. These will cost an extra three and a half to fifteen percent.
Once you have some experience, and an inventory or real estate, under your belt, you might give the cash out refinancing strategy a try. You will be refinancing one home's mortgage to pay for another property. This works well for those paying all cash for a house or needing the money for a down payment on one.
Lenders will typically approve seventy-five percent of the loan to value for up to thirty years. The interest rate is lower than a hard money loan. It will cost you anywhere from three to five percent. The lending and closing fees are not as high either. They usually run from two to eight percent. Lenders want to see a credit rating of six forty or higher.
If you are willing to put your primary residence up as collateral, you can get a home equity line of credit as the owner occupant. This is similar to a credit card, and is common practice with seasoned real property investors. One of the good things about a line of credit is that you don't start paying interest until you begin to withdraw money from the account.
If you are in the market for a primary residence, but are looking for one that needs some renovation, you can apply for a thirty year permanent loan with an FHA 203 rehab loan added to it. The amount you can get for renovations is limited however. You will also be required to follow HUD's list of allowable repairs.
Many people have made very successful careers out of buying and selling real estate. There are lot of ways to finance the ventures, if you know where to look. When you decide to try something like this, you should research all the financing options first.
A hard money loan can be a good choice if this is one of your first rehab projects. With this loan, you are securing the debt with the real estate and only borrowing the money for one to three years. Lenders are more concerned about the value of your property than how much experience you have. When you get one of these loans it covers the purchase of the property and the cost to repair.
Most lenders will offer from eighty to ninety percent of the loan to value. You have to repay it within three years. Interest runs anywhere from seven to twelve percent, and you will have to pay the closing costs and lending fees. These will cost an extra three and a half to fifteen percent.
Once you have some experience, and an inventory or real estate, under your belt, you might give the cash out refinancing strategy a try. You will be refinancing one home's mortgage to pay for another property. This works well for those paying all cash for a house or needing the money for a down payment on one.
Lenders will typically approve seventy-five percent of the loan to value for up to thirty years. The interest rate is lower than a hard money loan. It will cost you anywhere from three to five percent. The lending and closing fees are not as high either. They usually run from two to eight percent. Lenders want to see a credit rating of six forty or higher.
If you are willing to put your primary residence up as collateral, you can get a home equity line of credit as the owner occupant. This is similar to a credit card, and is common practice with seasoned real property investors. One of the good things about a line of credit is that you don't start paying interest until you begin to withdraw money from the account.
If you are in the market for a primary residence, but are looking for one that needs some renovation, you can apply for a thirty year permanent loan with an FHA 203 rehab loan added to it. The amount you can get for renovations is limited however. You will also be required to follow HUD's list of allowable repairs.
Many people have made very successful careers out of buying and selling real estate. There are lot of ways to finance the ventures, if you know where to look. When you decide to try something like this, you should research all the financing options first.
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