Recently a new product for flippers has come into the market and is gaining some steam. I’ve been contacted by many on and off BP about the particulars regarding this type of financing and who can obtain it. Provided will be a little over view of what the product is intended for.
There have been many requests for funding with zero monthly payments to take some of the pressure off the process of buy/renovate/market/sell. Lenders have now come around to the fact that this template can be safe and viable alternative to traditional fix and flip funding. Although not everyone can qualify for this type of loan here’s a small breakdown of what can get you ready for this type of funding:
Strong FICO is preferable. The absence of judgments, bankruptcies and Liens is a must- not only with this type of funding but in general when looking for money.
The rate is dependent on FICO but be prepared for a rate of 10-15%. This rate is covering your 80% property purchase and 100% of the rehab.
Number of flips completed and a track record definitely will help. Lenders want to know you have a handle on what you’re doing. While a new investor can still obtain this type of funding- it’s easier with a few deals under your belt.
Down payments are going to be in the 20% range. Factoring in FICO, history, ect.
No seasoning required for cash down payment**(at least in our portfolio, I’m not aware of other lender requirements)**
The loan term is a full 12 months.
I’m open for other questions anyone may have!
Interesting. Didn't know about it. Is this kind of loan available in all the states and can a first timer take advantage of it?
Yes, other factors do come into play with a first time investor though.
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