Purchasing Power with a Fix-and-Flip Line of Credit
If you’re an experienced real estate investor, you know that to make big moves in the fix-and-flip game, you have to have a direct pipeline to secure funding. FBC Funding is your local mortgage broker with connections to top lending groups across the United States. In addition to fix-and-flip single loans, we also offer fix-and-flip lines for credit for qualifying investors who have had previous successes in the business. Lines of credit are available for up to 90% of the purchase price of a property and 100% of rehabilitation costs. There’s a huge opportunity for long-term profit from investment properties, and we’re here to help seasoned investors make the most of it. Fill out the Quick Quote form on the right of the screen or contact us at (888)407-6767 about a fix-and-flip line of credit today.
Our borrowers with fix-and-flip credit lines mean serious business. They need to be able to make fast calls on a property when the right opportunities present themselves. To qualify for this type of financing, there are some benchmark qualifying requirements to consider. Keep in mind, however, that approval is always a case-by-case basis, so you’ll need to speak with a mortgage professional directly to determine eligibility. Most qualified borrowers have no derogatory marks on their credit history, including no bankruptcy or foreclosure in the past 3 years, no payments later than 30 days in the past year and no payments later than 60 days in the past two years. Investors should also provide documentation of successful investment ventures in the past few years. We have no set debt-to-income ratio maximum; rather, we evaluate experienced investors on tax returns and the success of previous investment ventures.
The Basics and Benefits of Fix-and-Flip Credit Lines
We offer up to 90% financing for the purchase price of a property for clients with a 720 or higher credit score. Clients with 680 may secure up to 85% financing, and clients with 620 or higher scores may secure up to 80% financing. A fix-and-flip line of credit is available to cover up to 100% of rehab costs as they arise during renovation.
Terms are available for up to 9 months with 9-12% on interest only with 2.5 to 4 mortgage points (depending on how experienced a lender is).
Our fix-and-flip investors with lines of credit have a wide array of investment ventures. Property types include single family homes and town homes, multi-family homes with 1-4 units and even commercial apartments with up to 30 units. One of our mortgage professionals will work with you to understand your investment goals so we can determine what lenders will allow you to maximize profits. The terms are based on 4 factors credit, experience, liquid assets and net worth.
- The minimum credit score is 620
- The product is offered nationwide
- The credit line is up to 90% of purchase and 95% of rehab
- The credit line will cover up to 75% of ARV
- The rates are as low as 7% up to 11%
This line is reviewed every year and can be upgraded as your experience and other qualifying factor improve. The line offers the lowest cost to funding fix and flips with origination points as low as 2% or even an option to reduce points to as low as 1% by taking a higher interest rate. For any investor completing deals in less than 6 months the higher rate may be a better option.
We Want to Maximize Your Success as an Investor
FBC Funding is a respected partner in the fix-and-flip community. We’re here to facilitate the funding that aspiring and long-term investors need to turn discarded property into gold. If you’re interested in a fix-and-flip line of credit with as little as 10% down and up to 100% rehab financing, contact us today at (888) 407-6767 or fill out the Quick Quote form on the top right of your screen.