Fix & Flip Loan
Fix-and-flip loans are short-term loans used by real estate investors to purchase and improve a property to then sell it for a profit or refinance it. These improvements range from minor renovations to a complete reconstruction of an existing home.
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The initial draw will be calculated based on the As-is Value of the Property, and the renovation budget will be advanced in construction draws.
Standard Loan Terms
‣ Max Loan Amount: $5,000,000
‣ Max LTC/ARV (Loan to Cost / After Repaired Value): The Lesser of 95% LTC or 75% ARV
‣ Rates: Starting at 8.99%
‣ Term of loan: 12 months (with option to extend to up to 18 months)
‣ Payment: Monthly Interest Payments with Balloon at Maturity
‣ Prepayment penalty: None
‣ Minimum credit score required: 620
‣ Closing time: can close in 10 days if needed, average 2+ weeks.
Standard Requirements
‣ Credit Application filled and signed
‣ Last 2 bank statements (Of a US Bank account)
‣ Copy of ID
‣ Copy of Borrowing Entity documents
‣ Purchase Contract (If the loan entails purchase)
‣ Project budget / Scope of work
‣ Approved plans (If applicable)
‣ Track Record Sheet
‣ Contractor's information
‣ Property Insurance.