Rehab Loans

Fix and Flip Loans

A fix and flip loan is mainly based on the after repair value (ARV) of the property as collateral and typically you can get a loan up to 70 percent of the property value. If you are purchasing an investment property that needs rehab, this is the perfect loan for you. The loan process is quick with minimum paperwork required. Fix and flip loans are the way to go (almost same as you are purchasing with cash). They have higher interest rates and fees compared to conventional loans. Fix and flip loans do serve a purpose to those who need money fast.

Fix and flip loans range from $30,000 to millions of dollars. Terms vary but you typically have short terms up to 2 years with a variety of upfront costs and an interest rate that is typically higher than subprime rates.

Terms:

  • Up to 70% after repair value
  • Up to 90% purchase price
  • Up to 100% financing for rehab budget, want to see 20% of rehab budget in reserves plus 3 months interest only payments as well
  • Origination fee starts at 3 points
  • 12 month interest only rates 11 – 15%
  • Appraisal costs $350 – $400
  • 7 – 14 days closing time, always negotiate closing for min 14 days out if possible

Required docs:

  • Completed loan application – Pre-qualification
  • Rehab budget from licensed contractor
  • Executed purchase agreement
  • Recent 2 months bank statements – Pre-qualification
  • Copy of driver license – Pre-qualification
  • Articles of Organization, Operating Agreement, and IRS tax ID letter
  • Builders Risk policy

If you have a short term financing need, our company has a program for you. Whether you desire to purchase or refinance, we are your best source for financing.

Contact our loan advisors. We are just a call away, call us at 770-854-2194 or click the button below to apply online.

Our goal is to deliver quality service – in every possible manner.

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