Fix & Flip
Asset Based, No Proof of Income Needed, No Tax Returns Required. Fund up to 90% of the purchase and 100% of the rehab not to exceed 75% of ARV. Rates starting at 9.99% for very well qualified borrowers.
Up to 90%
LTV on Purchase
Up to 75%
About the Fix & Flip Loan Program
Rates Start at 9.99%
Up to 90% of the Purchase
100% of the Rehab
650 Minimum Fico Score
Non Owner Occupied
12-24 Month Terms
No Prepayment Penalty
Loans from $75K to $5M
How does a Fix and Flip loan work?
When working with fix and flip lenders, investors need to have some skin in the game and put capital up front towards their project. Usually, a fix and flip loan will finance between 75% to 90% of the overall project cost, which means the investor will have to cover the remaining 10%-25% up front. Interest rates can vary but are usually around 8% to 11% with origination points running between 2.5 and 4.
The terms of hard money loans are usually 12-24 months and are specifically tailored for fix and flip projects with clearly defined timelines. When compared to 203K loans or residential loans, hard money lenders are considerably more flexible regarding the loan approval metrics and underwriting policies as well as having the ability to close the lending process in a fraction of the time it takes conventional banks to.
Features and Benefits
Hard money loan amounts are determined by comparing the current value of the property with its value after the completion of the rehab, which is referred to as the ARV (After Repair Value). Another benefit is that the approval criteria is mainly focused on the deal- the property and the viability of the project and not entirely on the credit score of the individual. That is not the case when it comes to 203K loans, which typically require at least a 650+ credit score and mandate that a minimum of $50,000 in renovations be completed.
For hard money loans, there is not a set amount of rehab costs that must be completed. Investors using hard money for a flip can work with any licensed contractor of their choosing; whereas, with a 203K loan, investors need to use contractors that have been pre-approved by the bank. Hard money loans can close in a matter 12-15 business days versus banks that take a minimum of two months to close. Time is money and a huge factor in the flipping business, making hard money loans a great option when it comes to funding your projects.
Applying for a hard money loan
Applying is quick and easy and more efficient than getting a 203K or conventional bank mortgage. There is considerably less paperwork as a hard money loan only requires a few key documents. After you locate the ideal investment property, you will consult with a loan officer and complete our streamlined online application. The loan officer and underwriter will then walk through the deal with you step-by-step and explain the appraisal process should your deal qualify for financing. Next, we will generate a term sheet that clearly specifies all of the loan’s terms so there will never be any surprise charges. The loan then proceeds to the closing process, after which you will receive your loan.