Houston Real Estate Investors are always on the look out for good Rehab Investor Loans. This type loan is normally 90% of the purchase price and 100% of the Rehab budget. You should be paying no more than 8.5% if you are an experienced Investor. Houston Hard Money Lenders vary greatly on the rates they charge. You should shop around. You will also want an Interest Only Rehab Loan. That way you keep your cash flow and a minimum while you rehab the property.
Hard Money Loans Houston are normally costing about 2 points if fees. One of the most important factors is do not get a loan for less than 12 months. To many times a property needs some extra rehab that will take time and any thing less that 12 months term is unacceptable. If the Lender ask for a fee to give you the minimum 12 months just pass. Also make sure there is no cost to pay it off earlier than 12 months.
Houston Hard Money Rates will vary among Lenders. But look for other features of the loan besides Rate. Like the 12 month term, no early pay off cost and no junk fees. If you are getting a Houston Fix & Flip loan be sure to get 100% of the Rehab budget in the loan. Many Lenders will put the 1st three payments on the loan also.
It is not to hard to calculate your Interest Only payment amount. Take the loan amount times the interest rate….that is the annual interest amount. Then divide by 12 months for the monthly payment. Easy to calculate. Mortgage rate for rental property should be about 6-7% for a 30 year non rehab loan.
At Unlimited Mortgage Solutions we offer many types of Houston Houser Flipping Loans. All are only for non owner occupied properties. If you are a Houston Real Estate Investor, check us out at www.umspros.com