My father is actually in the process of acquiring a construction loan for a remodel on his childhood home that he just inherited after the passing of his parents. The house had a refi a few years back for a small amount of money to help cover bills that could not be covered with their retirement funds.
When my dad transferred the deed into his name and assumed the loan balance, he also inquired about a construction loan. He was told by the bank that they are not giving any construction loans unless the home is the owners primary residence for at least 8-12 months — I cant remember the specific time frame.
Obviously for someone in my father’s situation, this isn’t a problem. But I can imagine the surprise if this happened to a flipper expecting to do a zero out of pocket flip.
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