Best Owner Build Financing?

[danielmark]

Who did everyone go with for your owner build financing? I’m finding out that Owner Build loans have different terms that regular pool loans.

I’m only looking to borrow about $30k (putting 10 down). I’d love to hear your experiences. One lender (I believe HFS) told me 7-8% rates are what they’re seeing in my credit score range (750).

Any tips would be great! For some reason I can’t find a bank willing to let me do a HELOC on my rental property…

 

[Newdude]

We used Lightstream for both of our builds. It was simply an unsecured loan not involving the mortgage/house and we could have used then for anything being a PB or DIY. Or credit cards / a new kitchen/ etc. The rates were higher recently than we paid the first time, but so was everybody else.

 

[danielmark]

We used Lightstream for both of our builds. It was simply an unsecured loan not involving the mortgage/house and we could have used then for anything being a PB or DIY. Or credit cards / a new kitchen/ etc. The rates were higher recently than we paid the first time, but so was everybody else.

What was the rate if you don’t mind me asking?

 

[renesme]

We also used Lightstream. As mentioned above it's an unsecured loan so could be used for anything. Our rate is 6% with a FICO over 800.

 

[JoyfulNoise]

Any tips would be great! For some reason I can’t find a bank willing to let me do a HELOC on my rental property…

Not at all surprising, the risks associated with default on rental properties are much higher and HELOC's are very low in the pecking order when it comes to bankruptcy and disposition of funds to creditors. No bank wants to take a risk that big on a property where they have no direct relationship with the people that occupy it (ie, the renters).

7% or more on interest is a lot ... hope you can find a better rate.