Hard Money Rehab Loans for Fix-and-Flip Investments
At FBC Funding, our skilled mortgage professionals specialize in unique funding solutions for fix-and-flip investors in and around South Holland, IL. Hard money loans are an asset-based type of financing, in which funds are secured by the value of real estate rather than a borrower’s financial fitness. They’re designed for short-term projects, which makes them a great option for real-estate investors who want to purchase, renovate, and sell a property quickly for profit. Our mortgage professionals offer some of the most competitive interest rates for hard money loans in the area, and up to 100-percent financing for our most experienced investor clients. Whether you’re a skilled fix-and-flipper or just getting started with investing, contact us to learn more about hard-money rehab loans for your next investment venture by filling out the Quick Quote form on the right.
Short-Term Loans for Investors
Also known as fix-and-flip loans, hard-money rehab loans are short-term loans for investors who want to purchase, renovate, and sell a property quickly and make a profit. Typically, they have terms no longer than 6-9 months. They combine the purchase and rehabilitation costs for a project into a single mortgage loan. Hard money loans typically have higher interest rates than conventional mortgages, which are more suited for owner-occupied homes.
Hard money rehab loans may be used to rehab single-family homes, as well as multi-family and mixed-use properties. Many of our clients invest in several fix-and-flip projects at once.
Before you can get approved for a hard money rehab loan, you’ll need to get an appraisal of the “as-is” value of a property and for the projected “after-repair” value. Your contractor will also need to provide a detailed timeline of the rehab schedule and estimate the cost of repairs.
- Fix and Flip for Experienced Investors:
- Discount points of 3-6% of the after-repair value
- Rates available from 10.5-16% depending on the type of loan
- Financing up to 55-70% of the projected after repair value
- Terms of 6-9 months
- Fix and Flip for Multifamily Properties: At FBC Funing, we offer up to 85% financing for purchase and 85% for rehabilitation costs for multifamily and mixed-use properties. Our eligible applicants typically have a credit score of 600 or more, with higher LTV for better credit.
- Fix and Flip for Novice Investors: FBC Funding has several lending partners who offer competitive interest rates, even for investors who are just starting in real estate investing. When a new borrower comes to us for financing, we look closely at his or her financial status and goals in investing to determine what type of financing makes sense for each.
- Fix and Flip Line of Credit:
- 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%
Qualifying for Hard-Money Rehab Loans
We offer up to 100% financing for purchase and up to 100% financing for rehab costs, but only for our most qualified candidates. To be eligible for 100% financing, you will need:
- A minimum credit score of 660
- At least three fix-and-flip projects completed in the past two years
- Cash reserves of 15% of the projected total value of the project
- Bank statements and W2s or profit-and-loss statements from your business from the past two years
When it comes to rehab projects, time is of the essence. We’re able to provide preapproval for many clients and even offer lines of credit for rehabbers with several fix-and-flip projects.
Fast Answers for Can’t-Miss Opportunities
Our mortgage professionals are here to help you find the most competitive rates for your fix-and-flip project so you can maximize your profits. If you’re interested in using hard money rehab loans for a project in South Holland, IL, contact us to get started. for more information on our programs contact us today at (708) 299-3244 or fill out the quick quote form at the top right of the page.