Real Estate Investor Fix and Flip Rehab Credit Line

Many seasoned and committed residential and commercial real estate fix and flip rehab investors seek to have a simple means of ready financing that is less expensive and helps there business run smoother more predictable and generally better. Investors do not want to seek funding or wait for approvals. That is a part of their business that can nearly be automated and reduce the stress of funding. The Fix and Flip Credit Line can accomplish these goals and more for them.

Benefits of the Fix and Flip Rehab Credit Line

There are many benefits to this program that can help investors meet their financial goals. These benefits include:

  • Certainty of Funds: The program approvals the borrower for a rehab credit line up to a specified amount. The borrower would need to put down a down payment of 10% to 20% dependent on the credit approval. The lender then needs to only verify the as is and after repair value property value and the scope work.
  • Quick Closing: The Rehab Credit Lines allows the borrowers to close quickly since we only need appraisal, inspection and title commitment. These loans are generally clear to close in as little as 10 days.
  • Purchase Price Savings: With the fix and flip rehab credit line the borrower can offer a lower price with no mortgage contingency. This allows him the negotiation power of a cash offer. This can save the borrower substantially on the purchase price.
  • Replenishing Funds: As a Fix and Flip investor or an investor who Buys, Rehabs, Rents and Refinances to Hold your rehab credit line is replenished once the property is sold or refinanced. This allows you to continue to buy and rehab properties without having to re apply for funding for each deal.
  • Reduced Costs: The rate and points are reduced as the investor does more and more transactions. Therefore, total cost to do business will dramatically reduce.

These are but just a few benefits. Additional benefits arise based on how the investor is currently doing business. Ultimately the more active the investor is the greater the benefit of the rehab credit line.

Requirements for Rehab Credit Line

Many investors confuse this with a line of credit similar to a home equity line of credit or a business line of credit. It is neither. In essence this is a true pre approval where the borrower has been fully approved for financing up to a set amount and the only approval prior to closing is the property (as is value, after rehab value and scope of work).  Approval Qualifications areas follows:

  • Down Payment:
    • 10% with 720 credit score & 4 completed transactions & $250,000 net worth & $50,000 Liquid
    • 15% with 680 credit score & 2 completed transactions & $250,000 net worth or $50,000 Liquid
    • 20% with 620 credit score & 1 completed transaction & $125,000 net worth & $50,000 Liquid
  • Credit Limit: Approximately five times liquid assets
  • After Rehab Value: 65% to 75% depending on credit assets and experience
  • Minimum Loan Amount: $55,000 at 80% LTC, $80,000 at 85% LTC and $150,000 at 90% LTC
  • Credit: No Bankruptcies or foreclosures in the last 3 years, no 30 day mortgage late payments in the last 12 months or 60 day mortgage late payments in the last 24 months.
  • Income:  No Debt To Income requirements – Tax returns are used to show experience and performance of investment properties.
  • Terms: rates 9% to 12% for 9 months interest only with 2.5 to 4 points based on lender experience (the more transactions with this lender the lower the costs.)
  • Property Types: Single Family, Condo, Town Home, Residential Multi Family to 4 units and Commercial Multi Family to 30 units

If you are an active real estate investor this could be a great means of financing for your business.

APRIL 2017

RATES LOWERED:                     NOW          6.99% to 8.99%

POINTS LOWERED:                  NOW           2% TO 3.5%


  • UP TO 95% to finance rehab
  • Up to 75% of ARV
  • up to 30 units financed
  • credit score as low as 600