Fix and Flip Loan
Although Fix and Flip Loan are similar to a Rehab Loan, they are not
New - Fix and Flip Loan Program - Up to
90% on purchase and rehab Click here for more
A Fix and Flip Loan offers up to 80% financing on 1-4 family Non-Owner Occupied of the purchase price
or the as is appraisal value; whichever is less.
There is no minimum credit score requirement on a Fix and Flip Loan.
Monthly payments; interest-only with the Principal due at maturity, usually 12 months and there are no
prepayment penalty. Average closing time line is 10 to 15 days.
Although a Fix and Flip Loan only offers up to 80% financing, you have more flexibility than you would
have with a Rehab Loan. Since Rehab Loans require credit enhancement in the form of a mortgage on the borrower's
primary residence or investment property with equity.
With a Home Equity Lines of Credit (HELOC), you can use the funds repeatedly for the down payment, repairs
and closing cost on all your projects. You would be complete control of the projects, no draw request,
or inspection on the property to worry about.
Alternatively, you can get a Fix and Flip Loan on an investment property that you are holding as a rental;
the max LTV is 70% on refinance, the term is 12 month with interest-only monthly payments with the Principal due at
maturity and there are no prepayment penalty.
Some Real Estate Investor are using their investment properties that they hold as a rental by getting a
blanketFix and Flip Loan on 2 or 3 of their investment properties in advance, so they can have ready cash on
hand when a great deal is found.
Fix and Flip Loan Program:
Loan size $50,000 to $2,000,000
Property Type: 1-4 family Non-Owner
(case by case)
Purchase: Up to 80% on purchase price or the as is appraisal value; whichever is less.
Refinance: Up to 70% on as is appraisal value
No second mortgage on subject property allowed
Credit: There is no minimum credit score
Terms: 12 months; no prepayment penalty
Payment: Interest-only monthly payments with the Principal due at maturity
Rate: 12% (1% a month)
Closing Cost: 6 to 8 Points (minimum $5,000 per deal)
Average closing time line 10 to 15 days.
The borrower is required to have an LLC, corporation, or corporate entity named on title
Lending Area: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware,
Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan,
Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North
Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota,
Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, Wyoming
States outside Lending Area on a Fix and Flip
Loan: Maine, Vermont, and Louisiana
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House Flipping with a Fix and Flip Loan
Fix and Flip Loan