Читать книгу Flipping Houses For Dummies онлайн

101 страница из 103

To take advantage of a home renovation mortgage, you find a property to flip and then do a walk-through with your contractor (see ssss1) and come up with a list of repairs and renovations and their total estimated cost. You present the lender with the details, they order an appraisal, and if the appraised value of the property is greater than or equal to your total (purchase price plus cost of renovations) you get the loan, assuming you’re deemed creditworthy.

You use a portion of the loan to purchase the property, and the lender holds the rest of the money. For each repair or renovation, you obtain an estimate from a reputable contractor and then request a draw (a portion of the loan balance that the lender is holding) to be paid to the contractor. After the work is completed, a final inspection is conducted to ensure that all repairs have been made. Typically, you’re given about six months to complete the repairs and renovations.

Fannie Mae offers a home renovation mortgage that’s open to real estate investors. The FHA 203K renovation loan, on the other hand, is made available only for the purchase and renovation of an owner-occupied home; that is, you must live in the property for a full 12 months before selling it. You must apply for an FHA 203K loan through an FHA-approved lender. If this option is something you want to consider, discuss it with your mortgage broker.