With a fix and flip loan, most of the purchase and the whole renovation are financed, so the cash you have can stretch across more than one project. Here is how the loan works and what flipping near the coast adds to the job.
What is financed
- Up to 90% of the purchase price
- Up to 100% of the renovation budget
- In total, up to 70 to 75% of the after-repair value
Those figures are for credit scores of 720 and higher. Scores down to 600 qualify with less leverage and a higher rate.
Draws
The renovation money is not handed over at closing. It is paid in draws as stages of work are completed, against the line-item budget you gave us. A detailed budget means faster draws.
No income paperwork
The loan is approved on the deal: no tax returns, no employment check. With 5 or more flips in the past 2 years you can also close without an inspection or appraisal.
Speed
Most loans close in 14 to 21 days, and in about 7 days when title and insurance are ready. We can look at a deal on the first call and give you a pre-qualification letter to send with your offer.
Structure
- Interest-only payments
- 6 to 24 month terms
- No prepayment penalty
What the coast adds
- Moisture and termites. Order a CL-100 report before you set the budget.
- Salt and sun. Roofs, decks, windows and HVAC wear out faster than inland.
- Flood zones. Your buyer’s flood premium affects your resale price. Know it in advance.
- Review boards. In gated communities, exterior work waits for architectural approval.
- Storm season. Schedule roofing and exterior work outside the peak months where you can.
- Permits. Pull them. Buyers’ attorneys check.
Decided to keep it?
A DSCR rental loan replaces the fix and flip loan with long-term financing.
Full terms are on the fix and flip loans page. Ready with a deal? Send it to us.