Financing Costs are costs you incur if you are getting outside funding to fund the purchase and/or repairs for your rehab projects.  Financing Costs include Loan Interest Payments, Points & miscellaneous loan fees.

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FAQ

What are Typical Financing Costs & Amounts?

Typical Financing Costs

Here's a list of typical Financing Costs and average amounts that you will likely have on your rehab projects.

• Interest Payments (7 to 15% Interest during Holding Period) - Your interest rate will vary widely depending on the type of financing, (hard money, private, conventional), and your individual financial situation.  Click here to learn more about Loans for Flipping Houses
  
• Points (2 to 3% of the Loan Amount) - Again, depends on the lender, but you should expect to pay a few % points upfront.
  
• Other Closing Costs ($750 to $2,000) - The Lender will also likely charge  ridiculously inflated junk fees for miscellaneous items.
  
• Loan Origination Fee
  
• Appraisal Fees
  
• Underwriting Fees
  
• Credit Report Fees
  
• Processing Fees
  
• Rehab Draw Inspections ($100 to $200 per inspection) - Your rehab loan will be divvied up into a 'loan draws'.  When you request a loan draw payment, the Lender sends a 3rd-Party Inspector to inspect the property to ensure the project is ready to receive the next loan draw payment.

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Learn How to Use FlipperForce to Calculate your Financing Costs

Learn how to setup your Funding and Financing costs for your house flips using the Flip Analyzer Tool.