A Rehab Loan (commonly known as a Fix & Flip Loan) is a short-term loan used in both commercial and residential real estate. This loan is designed to help an investor purchase and renovate a property in order to sell it at a profit.
Who Are Fix & Flip Loans Best For?
Fix and Flip loans are best for investors that need a loan that covers a portion of the purchase and construction costs needed to rehab the property. All levels looking to buy a property to renovate and resell after they are done with their project.
How Does A Fix & Flip Loan Work?
The borrower will identify a property that is selling below market value. The borrower then submits an application to the lender along with a scope of work or budget to show an estimate of what it will cost to rehab the home. If approved the lender will cover up to 90% of the purchase price and 100% of the construction costs!
What Are The Qualifications For A Fix & Flip Loan
To qualify for this loan, you’ll need:
– A Copy of a valid state ID
– Copy of Entity Documents (LLC, S-Corp, Etc)
– 10%- 25% Down Payment on the property (Experience level determines down payment amount)
– Construction Budget or Scope of Work
– FICO score 620 minimum
– Record of Experience
About Our Fix & Flip Loans
– Close in less than 3 weeks
– Rehab funds are financed up to 100%
– Loan amount from $100k-$2.5M
– Typical Rates are from 8.99% to 13.99%
– AirBnB’s, Rental Properties, Commercial Properties – Eligible.
Property Requirements
– The property must be an Investment Property or a Primary Residence can be used if the loan is for a business.
– Eligible property types include: Condos, Townhomes, Single Family Homes, Apartments, and Commercial Buildings
