Can that deal can be financed. Here is what us lenders look for in most deals

[Brett Chandler]

🚨 Investor Prequalification Cheat Sheet
For Realtors Working Wholesale & Off-Market Deals
💡 Quick Guide to Match Buyers with the Right Loan Path

🔹 1. Fix & Flip Loan
Ideal for: Buyers renovating and reselling for profit

Minimum Guidelines:
• FICO Score: 620+ (700+ preferred for best terms)
• Down Payment: 10%–20% of purchase price (based on experience)
• LTARV (Loan to After Repaired Value): Max 70%–75% — this is the big one!
• Experience:
 – 0–1 flip in last 2 years = higher rates, lower leverage
 – 2+ flips = better terms (LTV, LTC, LTARV, rate)
 – General Contractors may qualify for better leverage

Liquidity Requirements:
• Must have funds for down payment, closing costs, and 3–6 months of reserves

Loan Structure:
• 12-month interest-only loan (extensions possible)
• Detailed Scope of Work (SOW) required
• Must outline a clear exit strategy

Entity Requirements (if closing in LLC):
• Articles of Incorporation, EIN, Operating Agreement, Good Standing Cert
• HUDs or LLC ownership history to show experience

Funding Timeline:
• Typically 4–10 business days with clear title and insurance

✅ Best Fit:
✔️ Buyer has cash for down payment + reserves
✔️ Property needs rehab
✔️ Wants to close FAST

🔹 2. Rental Loan (DSCR / No-Income Loan)
Ideal for: Buy-and-hold investors

Minimum Guidelines:
• FICO: 660+ (680+ preferred)
• Down Payment: 10%–25% (higher if DSCR < 1.0)
• DSCR (Debt Service Coverage Ratio):
 – Standard: 1.00+
 – Acceptable: Down to 0.75 with compensating factors

No personal income docs required
• Lease or 1007 Rent Schedule accepted
• Property Types: SFR, 2–8 Units, Condo, Townhome
• Terms: 30-Year Fixed, IO, or ARM

✅ Best Fit:
✔️ Long-term rental play
✔️ Property is rent-ready or has solid comps
✔️ Buyer has funds to close and hold

🔹 3. Cash Buyers
Ideal for: Buyers with true cash (not hard money)

✅ Must have verifiable funds
✅ Close in under 7 days
⚠️ If they say "cash" but need financing, send them to Fix & Flip or Hard Money

🔹 4. True Hard Money (Florida Only)
Ideal for: Non-qualified buyers or unconventional properties

• Any credit OK
• Any property type OK
• Max 65% of purchase price or as-is value
• 2-day close with clean title
• LLC or personal name OK

✅ Best Fit:
✔️ Major credit issues
✔️ Weird property (rural, teardown, etc.)
✔️ Needs to close now

🧠 Realtor Quick-Screen Questions:
• Are you buying to flip or rent?
• Are you using financing or true cash?
• How many flips or rentals have you done?
• Do you have funds for down payment, closing, and reserves?
• Is the property rent-ready or needs rehab?