Deferred Payment Fix and Flip Loan
Deferred Payment Fix and Flip loan
Deferred Payment Fix and Flip Loan
Deferred Payment Fix and Flip Loan: Most Real Estate Investors who are serious about their business want options to help them do more rehab projects with less money. These real estate investors want options to do more projects at the same time. There are many ways to accomplish this. They include:
- 100% Financing – low down payments (see program options here)
- Low Interest Rates
- Deferred Payment Fix and Flip Loan
All of these options will allow borrower to use less of their personal money but each come at a costs.
The 100% financing option requires a better credit profile or charge higher interest rates and closing costs. The full documentation 100% financing program allows closing costs to be rolled into loan as long as the loan does not exceed the maximum ARV. The full documentation option also requires borrower to own their primary residence and allow a second mortgage as additional collateral. The 100% financing program generally takes 4 weeks to process if the borrower is not pre approved.
The Low interest rate option requires good credit profile and a larger down payment. we have rates as low as 6.99%. This program can take longer to process as with the 100% financing program.
The Deferred or No Monthly payment Program offers down payment as low as 10% and can close in as little as two weeks ( three weeks on the first loan). The draw back is the closing costs may be higher. Benefits of the Deferred No Monthly Payment Fix and Flip Loan
- No Monthly Payments – Buy, Rehab, Sell no payments along the way.
- Low Down Payment – Depending on experience and ARV up to 75%
- Do Multiple Projects simultaneously – No Monthly payments and low down payment mean your funds can go to multiple projects.
- No Income Verification
- Quick Close
How the Deferred Payment Fix and Flip Program Works
Based on the experience of the real estate investor, there is a down payment as little as 10% of the purchase price and the rehab escrow account is established for up to 100% of the renovation costs, not to exceed 75% of the After Repair Value as determined by the appraisal. In addition to the repair escrow for the rehab, there is a payment escrow established at closing. The borrower will contribute the first 3 payments to the payment escrow and the lender will deposit up to 9 payments into the payment escrow account. The total funds provided by the lender can not exceed 75% of the ARV. With 12 months of payments deposited into the payment escrow account, the borrower does not make payments during the 12 month term of the purchase rehab loan. Each month when the interest only payment is due, the payment is paid from the payment escrow account. At time the real estate investor completes the renovation and sells or refinances the property, the balance of the payment escrow is credited to the payoff of the loan. For example, if it takes 6 months to renovate and sell the property then upon the sell of the property the lender would credit the remaining 6 months of payments to the payoff of the loan.
Why Choose Deferred Payment Fix and Flip Loan
If you are looking to fully leverage a project with minimum cash out of pocket and have a quick loan turn around to fund in as little as 2 weeks with minimum paper work, then this is the program for you. The program is especially helpful for experience investors who have completed three or more rehab projects in the last three years. For these reasons savvy real estate investors should choose the deferred no payment fix and flip loan. Additionally, many real estate investors have saved funds to complete a real estate investment project, but would prefer not to deplete thier savings by the monthly payments.
For more information complete the quick quote form, call 888-848-3114 or click here to schedule a free loan consultation.
