100% Fix and Flip Guidelines

Fix and Flip

Real Estate Investor Funding

100% fix and flip guidelines for real estate investors. As a Mortgage Banker Specializing in Rehab and Fix and Flip financing FBC Funding offers many programs, including many residential fix and flip programs that offer No Money Down options for the purchase and 100% of the rehab costs for repairs. We have multiple such programs. Unfortunately, 100% purchase rehab is not available in every state and the terms vary depending on the state the property is located in. Instead of publishing all of the guidelines for all of our 100% financing programs I will publish ranges. If you meet the general criteria here, please contact us for a full pre-qualification of your project.

We offer four 100% programs with a fourth option for an unsecured term loan that turns a loan requiring down payment to 100% financing. The parameters are below. Every program is not available in every state.

100% Fix and Flip Guidelines for Purchase and Rehab

• Minimum Credit Score:   Minimum 660 preferably 700+ (620 with at least 1 completed flip in the last 2 years)
• Experience: 1 projects in the last 2 years (no experience necessary for full document loan and at least 660 credit score)
• Cash Reserves: Minimum of $30,000 for loan amount up to $250,000- or 6-months of payments plus 10% of the renovation costs.
• After Rehab Value: Maximum loan will be no greater than 65% of the after rehab value (up to 75% ARV with a 700-credit score and strong experience)
• Rates: starting at 12.5%
• Points: 3% to 5%
• Term: 8 to 12 months
• States: Alabama, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Washington DC*****New York Investors: Restrictions apply in Queens, Bronx, Brooklyn, Staten Island, or Manhattan.****  Limitations apply in certain other cities – call for details

100% Fix and Flip Guidelines for Purchase Rehab with no payments 

These 100% fix and flip guidelines are a financing program is for very experienced investors who have completed eight or more successful renovation projects in the last 5 years. The program is available in 40 states. Some closing costs are rolled into the loan, and the borrower has no monthly payment so the interest is due at the time the loan is paid off. The only money due at closing would be the lender processing and document fees, legal fees and title charges. The terms are as follows:

• Credit Score: 620+, The rate and points are based on the loan amount, credit score and experience.
• Minimum experience: 8 successfully completed projects in the last 5 years.
• Cash Reserve closing costs plus 10% of the renovation costs
• After Rehab Value: Maximum loan will be no greater than 75% of the ARV
• Rates: 8% to 14% depending on Credit Score, loan amount and experience
• Term: 6 months, 9 months or 12 months.
• States: This program is available in 40 states nationwide.

 CURRENTLY ON HOLD

100% Fix and Flip Guidelines for Purchase and Rehab with closing costs rolled in

• Minimum Credit Score:   Minimum 680 preferably 700+
• Experience: no experience necessary
• Cash Reserves: Minimum of 10% of loan request plus 6-months of payments
• After Rehab Value: Maximum loan will be no greater than 70% of the after rehab value (up to 75% ARV with a 720-credit score and strong experience)
• Rates: starting at 12.5%
• Points: 3% to 5%
• Term: 9 months
• Full Doc with income and asset verification.

• LIMITED JOINT VENTURE OPTIONS AVAILABLE / CALL TO DISCUSS YOUR PROJECT

FOR MORE INFO EMAIL LOUISJ@FBCFUNDING.COM

Call 888-848-3114

Click here to Schedule a free loan consultation

OR  GET A PREAPPROVAL HERE

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For Real Estate Investors who who need to purchase or refinance residential or commercial investment properties with no red tape that can close quickly the private money mortgage program is for you. There are no minimum credit score requirements. No income is stated for the borrower. This is truly Asset Based Lending.

Private Money Mortgage

Just what it sounds like. A Private Money Mortgage is from private investors not institutional lenders. The private investors create their own guidelines and are primarily concerned with the safety of their funds and secondly by the return on their investment. This is done by offering a lower loan to value and a higher interest rate than convention lending. The greater collateral reduces the potential risk associated with a borrower not qualifying for conventional financing.

In addition to ensuring adequate collateral for the risk, a private money lender will also consider the income generated by the property. This income or lack thereof can be sometimes overcome by a lower loan to value. This again increases the collateral and reduces the risk to the lender.

The Property

The Property is the primary criteria. What is the AS IS Value of the property. Is the Property income producing and can the income from the property cover the mortgage payments. Conventional lenders focus on credit, income and experience, but the private lender is primarily focused on the collateral.

As a rule of thumb, income producing property will have a maximum loan to value of 65%. Non Income producing properties will have a maximum loan to value of 55%. But there are other aspects of the  property that is important to the Private Money Mortgage Lender. These would include, location, type of property, location, condition, location and marketability to name a few.

Location

What state the property is located in is very important. As these are private individuals the proximity of the property to them is important. Most private lenders will only lend locally, or sometimes will have different terms locally and be more conservative when the property is in a different state or region.

Property Type

Usually the highest loan to value is given to residential or residential based properties, like multi-family and mixed use properties. Office Buildings and Retail are next in the ladder of being more secure and less risk. The highest risk property types are special purpose properties like Movie Theaters, Churches, etc. The greater the risk, the lower the loan amount.

Location

In addition to what state the collateral is located in, most lenders prefer urban and suburban locations as they are more easily sold. In areas the number of people in a MSA is low, there are fewer potential buyers, especially for unique property types. That is why lenders sometimes avoid rural areas completely.

Condition

This should go without mention, but many borrowers do not understand that if a property is in poor condition it is harder to sell at market price and it shows lack of pride in ownership. This may be an indication of unseen problems.

Location

Location, Location, Location!!!

The where the property is affects marketability, value, environmental and other risk factors that will always be considered as lending risk. This affects, rate, loan amount and even whether the loan will be even offered.

Marketability

How long does a property take to sell? That is key for the property owner and lender. Ultimately the Private Money Mortgage Lender is concerned that if they have to foreclose on a loan it will be on a property that can be easily sold to recoup their investment. This is partially reflected in the value, but also relative to the risk of time the Private Lender will consider.

Finally, all factors considered The Private Money Mortgage offer financing for properties that generally would not qualify for conventional financing.

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