100% FIX AND FLIP LOAN

100% Fix and Flip Loan

The 100% of purchase price plus 100% of rehab fix and flip loan has been updated as of April 2021. The good news is the LTV has increased. With a maximum loan amount not to exceed 65% on program 1 for a new investor or up to 70% for an experienced investor who has completed at least 1 flip in the last 2 years and has at least a 700 credit score. In Program one we will fund up to 10 units at 100% of the purchase and rehab costs. We can also lend up to 75% of the after rehab value on program 2. We can also roll in closing costs if there is enough equity utilizing program 2. In program 3 we can fund 100% of the purchase and rehab of your non owner occupied residential, roll in points and defer payments if there is enough equity. Program 3 we will fund 100% fix and flip up to 70% of the after rehab value. We can also defer payments under 100% fix and flip program 3. These are all exciting programs for new and experienced investors with good credit, cash reserves and a recent track record of successfully buying, rehabbing and profitably exiting their loans in a timely manner. Given the recent changes were many lenders have drastically tightened their restrictions we are still able to offer the 100% Fix and Flip Loan. Now we are expanding our terms.

The Benefits the 100% Fix and Flip Loan

There are several benefits of the 100% Fix and Flip Loan including:

• No Down Payment – 100% of the purchase price is covered
• No Funds for Rehab – 100% of the rehab costs are rolled into the loan and escrowed
• Quick Closing – close within two to three weeks on first deal and one to two weeks thereafter
• Great Service – the program is designed to be flexible and provide great customer service for experienced investors with a recent track record of successful exits who want to take there game to the next level.
• You may qualify for the points to be rolled into the loan
• You may qualify for closing cost to be rolled into the loan
• You may qualify for an advanced draw
• You may qualify for the deferred payment option

Qualifications for 100% Fix and Flip Loan

The 100% fix and flip loan is a full documentation loan where we verify income, assets, credit and experience. There are several factors we look at to determine if a Real Estate Investor qualifies for the 100% Fix and Flip Loan. The primary factors are Assets, Credit and Experience. I call them ACE. For the 100% program we require income verification.

• Assets – Borrower should have at least 6 months of mortgage payments as liquid reserves. In program 1, If borrower does not have the income to make the monthly interest only payments, they will still qualify based on additional cash reserves.
• Experience – at least one completed flip in the last 2 years. The more experience completed projects under the 100% fix and flip loan the better the terms but we will consider a first time investor who has a strong financial profile at a reduced loan to value.
• Credit – Minimum of 660 credit score for program one and 680 for program two and 680 for program three – we will also pull a background report. No recent major derogatory credit issues like bankruptcy or foreclosure. Credit scores over 700 qualify for lower rates and lower loan origination points for the 100% fix and flip loan.
• Experience is very important but we can make an exception for a borrower with great credit, great assets and a great team. As you complete more projects under the 100% fix and flip program your terms get better.
• As you close more loans under the 100% fix and flip loan you will be able to do multiple loans simultaneously.
• Income is verified and debt ratio’s are considered on programs one and two. There is no hard and fast rules on debt ratio’s but if a borrower has high ratios they can be overcome with large reserves.
• These are the main qualification factors specific to this loan. The loan approval is also subject to appraisal and title requirements as all mortgages are.

Loan Terms for the 100% Fix and Flip Loan

The terms of this loan are subject to risk and experience with each borrower. Therefore, the rate and fees will be ranges versus exact figures. Also, when a borrower is very experienced they can qualify for special terms once the we have developed an ongoing relationship. Here are standard terms:

• Rate – ranges from 9% to 14% depending on the loan size, borrower credit and experience plus which program.
• Origination Points – 3%to 5% depending on loan size and experience with this program, not just experience with other lenders.
• Term – the loan will be from 4 months to 12 months
• Payments – Interest only monthly payments with no prepayment penalty
• Loan Amounts – $100,000 to $1,000,000 (with exceptions for repeat borrowers to do smaller loan amounts.

Property Types Funded with the 100% Fix and Flip Loan

Under the 100% Fix and Flip Loan we will fund residential properties including Single family residences, Condominiums, Town Homes and PUDs as well as Duplex, Triplex and Quad properties. Additionally, we can fund multifamily properties up to 20 units and mixed use properties with at least a fifty per cent of the square footage utilized as residential. On top of the residential and multifamily 100% fix and flip loan we can fund 100% of the vertical construction on a ground up new build that would be a residential or multifamily property type that meets our rehab guidelines. To qualify for 100% vertical cost for a ground up construction project an investor must have completed at least 1 new construction project. I must emphasize 100% fix and flip financing is unique today, but it is practically unheard of for multifamily and mixed use projects.

What States do we Finance the 100% Fix and Flip Loan

This program is not available in every state yet. We will fund deals in 25 states now.

Current states the program is available are:

• Colorado, Connecticut, Delaware, Florida, Georgia, Illinois*,Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland*, Massachusetts, Missouri, New Hampshire, New Jersey, New York*, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, West Virginia, Wisconsin

For information on these programs and other purchase rehab programs, long term rental programs or commercial financing for real estate investors call FBC Funding at  888-848-3114 or email louisj@fbcfunding.com you can also complete the quick qualifier for us to determine if we can help you meet your real estate financing goals.

FBC Funding is a Commercial Mortgage and Hard Money Correspondent Lender and Mortgage Broker lending in 40 states throughout the United States. All programs are not available in all states.

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