Most conventional lenders will not finance a purchase intended for quick resale. That means an alternative or private lender, at a higher rate and on a short term.
Plan the exit first
The lender needs to know how the loan will be repaid: resale, refinance, buyer financing or another source of liquidity. Without a credible exit, the rate is not the main issue.
Risk from renovation delays
Every month of delay adds interest on an expensive loan while the market can move against you. Build in a margin of time and budget: renovation projects overrun their schedule far more often than they beat it.
Documents to gather
What the lender will ask for.
Purchase price
Renovation budget
Resale timeline
Value after work
Financing fees
Exit plan
Frequently asked
Can a flip be financed with an ordinary mortgage?+
Rarely. Conventional lenders finance a home or a building you intend to keep, not a quick resale. A private or alternative lender will, at a cost that belongs in the profitability calculation from the outset.
Current rates
Today’s rates, read with their conditions.
These rates are indicative. The one you get depends on your file, the type of mortgage (insured or not) and the lender, and the penalty attached to it matters as much as the number.
Buying, renewing, refinancing or an unusual situation: describe where you are at, even if it is still vague. Mathieu replies with the next steps and the documents to gather.
