Flippers, if you don’t know about the Fix and Flip loan, this is a loan you may want to consider if you’ve done one or more projects. This loan does not consider your debt to income ratio, credit score or W2s like other loans. The project however, does need to be an insurable property and not a complete tear down or massive gut renovation. Here is the scoop on this loan type:
- The rate will be based on your experience at real estate investing. You need to have done at least 1 flip in the last 9 months (current guidelines). The more flips you can show, the better the loan pricing will be
- You will need to put a minimum of 20% cash down
- Payments will be interest only
- No pre-payment penalty for 12 mo. loans
- Short term interest only loan (12-24 months)
- Renovation costs can be 100% financed
- The loan is for both property and renovation
- Property needs to be insurable currently
- Available for manufactured homes as well
- 100% of the renovation cost can be financed. One of the lenders has a partnership with Home Depot Pro meaning you would be able to purchase items at Home Depot through that.
- Since it is a short-term loan, it needs to be items that be turned around quickly.
- The guidelines for these types of loans can change overnight and there is rarely any warning given beforehand.
Contact me if you are interested in this loan and I can refer you to lenders who can help you.
