Seller Second Mortgage Fix & Flip -100% Financing


100% Fix and Flip Financing

We offer a few 100% fix and flip financing options. Most programs require great credit plus a lot of recent experience in flipping residential houses. If you are looking for 100% fix and flip financing you may qualify for the seller second mortgage program. Instead of you paying a down payment the seller can carry a second mortgage that will be paid off monthly or when you sell / refinance the property. There are many benefits to the seller second mortgage fix and flip program, including 100% financing and lower monthly payments.

Seller Second Mortgage

We have been asked many times will you allow a seller to carry a seller second mortgage on fix and flip financing and the answer has always been no. Now we can. A Seller Second is when the seller will sell you a property and instead of receiving full payment at closing they will allow the borrower tho sign a note for the balance owed to them. For example, if the purchase price is $100,000 yet the borrower can only come p with $80,000 (either as cash, financing or a combination of the two) then the balance due is $20,000. The buyer would sign a note for the $20,000 which would be subordinate to any purchase financing secured. The $20,000 is then repaid either by monthly payments, a balloon payment due at a specified time or both monthly payments with a balloon payment due at a specified time. This allows the buyer to have little or no money for down payment. The borrower may have funds but choose not to use them and thereby leveraging their money to do multiple deals.

This is a great option but most lenders do not allow it. Most lenders requires the buyer to have skin in the game. The risk to them are much greater when the buyer is not investing cash into the development project. We now offer this program in 16 States.

Guidelines for Seller Second Mortgage for Fix and Flip

  • Minimum Credit Score: 600 – no bankruptcies or forecloses in the last 2 years
  • Minimum Experience: 1 flip in the last 2 years
  • Minimum Cash in Bank: $15,000 – regardless of loan size
  • Minimum Loan: $100,000 including purchase and rehab
  • Maximum Loan Amount: $1,000,000 including purchase and rehab
  • Maximum Loan Amount: Can not exceed 70% of After Repair Value for borrowers
  • Maximum Rehab: The rehab amount can not exceed the base loan amount
  • States where Program is Available: Colorado, Connecticut, Florida, Georgia, Illinois* (only borrowers who have completed 10 flips in the last 2 years), Maryland, Michigan, Missouri, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Massachusetts.

Seller Second Mortgage Fix and Flip Program Terms

  • LTV: 85% to 90% of Purchase Price – 100% of Rehab costs
  • ARV: Up to 75% with 4 flips or more in the last 2 years. 70% between 1 – 3 flips in the last 2 years
  • Rate:  8% – 13% depending of LTV and Experience
  • Origination Fee: 2% to 4.5% depending on loan amount
  • Term: 12 Months

Call 888-407-6767 to review your project for the many fix and flip programs and options.

or email




Contact Us

FBC Funding
3047 N. Lincoln Ave
Chicago, IL 60657
Phone: 888-848-3114

Social Media

Equal Housing Lender