Financing Costs are the costs you incur when you get outside funding for the purchase or the repairs on a project. They include loan interest payments, points and miscellaneous loan fees.
Typical financing costs
Interest payments, 7 to 15% during the holding period. Your rate varies widely depending on whether you use hard money, private money or conventional financing, and on your own financial situation.
Points, 2 to 3% of the loan amount. Paid upfront at closing.
Other closing costs, $750 to $2,000. Loan origination, appraisal, underwriting, credit report and processing fees.
Rehab draw inspections, $100 to $200 per inspection. Your rehab loan is divided into draws. When you request one, the lender sends a third-party inspector to confirm the work is ready for the next payment.
Read the full article: What are Financing Costs?