Fix and Flip with no monthly payments

Fix and Flip with No Monthly Payments

No Monthly Payments? New Fix and Flip purchase rehab program with no monthly payments!!! Loan payments can be rolled into the loan for 12 months plus up to 90% of the purchase price with 100% of the rehab costs.  Most Hard Money Lenders look at the collateral (the property), the borrowers experience, the borrowers credit (credit score and credit profile) and the borrowers assets to determine qualifications. Some Hard Money lenders are even reviewing income and tax returns. This program uses computer analysis software that focuses on the collateral, the borrowers experience and the borrowers credit. Based on the analysis we are able to offer No Monthly Payments during the term of the loan with as little as 10% down of the purchase price. We can also advance the first draw at closing.

Fix and Flip with No Payments – Benefits

These are the benefits of this purchase rehab program.

Term: 12 months depending on how extensive the renovations needed.

No Payments: For loan to value up to 70% of the after rehab value payments can be rolled into the loan so no payments are made during the term of the loan.

Rates: Rates are from 10% to 12%. Rates are based on a combination of LTV, LTC, Borrowers experience and borrowers credit score. A borrower with extensive experience (especially recent) purchasing a property a loan to after renovation value and requires a low loan amount as compared to the total cost of the project will get the lowest rate. Rates can be as high as 12% for the riskiest projects. But even at 12% those projects would have a hard time finding the benefits of this program from another lender.

First Time Investors Accepted: Experience is a key metric in the loan qualification but we will approve first time investors as well.

No Income Verification: No income questions. No income taxes. No income verification.

No Asset Verification: No Asset questions. No bank statements. No asset verification.

Quick Close: Most loans can close in three weeks, depending on title and appraisal. The valuation is usually complete in 1 week. As long a there are no title issues the average loan is cleared to close in 14 days or less.

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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%

OTHER PROGRAM IMPROVEMENTS AS WELL:

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

CALL TODAY 888-407-6767 FOR MORE INFORMATION

The post R.E. INVESTOR FIX AND FLIP CREDIT LINE appeared first on FBC Funding.

We offer many low down payment hard money rehab loan programs with as little as 10% of the purchase price as a down payment and 100% of rehab costs covered. Many Real Estate Investors prefer rehab loan financing programs with low down payments. This allows them to qualify without having to invest large sums of money whether they have it or not. We offer are many programs available with down payment as low as 10% of the purchase price. The problem for lenders is a low down payment rehab loan is a much higher risk. That is why in order to reduce that risk private lenders have underwriting guidelines that are more restrictive when compared with programs requiring a larger cash investment.

The 10 percent down rehab loan program allows experienced investors to qualify for as little as 10% down payment of the purchase price. The loan will fund 90% of the purchase price and up to 100% of the rehab costs. The funding of the rehab costs is limited. The total loan can not exceed 75% of the after rehab value. If the after rehab value is $200,000 then the maximum the loan could be is $150,000 (75% of $200,000 is $150,000).  If the purchase price is $100,000 the down payment is $10,000 (10% of $100,000 is $10,000). Then the maximum available for rehab is $60,000 ($150,000 maximum loan minus $90,000 for the purchase equal $60,000 available for rehab). Even first time real estate investors may qualify for the 10 percent down rehab loan if the have very good credit.

10 Percent Down Rehab Loan Benefits

The other guidelines beyond the down payment that are excellent  benefits of the 10 down rehab loan are as follows:

• Minimum Credit Score – 640 for 90% if you have completed 5 flips in the last 3 years,  700 if you have only completed 2 flips in the last 2 years, 720 if you have completed no flips in the last 2 years.
• Maximum Rehab – 100% up to 75% of the after repaired value with less than 5First time investors have a must have 15%to 20% of the purchase price for down payment unless their credit score is 720+ flips completed in the last 3 years. Otherwise, the maximum the maximum loan will be 70% of the ARV and rehab will be funded at 100% to the 70% of ARV.
• Reserves Requirement – three to six months of the monthly interest only payment.
• Loan must close in entity name
• Deferred Payments option available at 5 plus completed projects

The terms of this 10 percent down rehab loan include being: a twelve month interest only loan with no pre payment penalty (loan term up to 24 months available). Rates are from 10.% to 12.5% depending on loan to value, credit and the experience of the investor. Points are 2% to 4.5% depending on loan size. Minimum loan is $100,000 and the maximum loan is $2,000,000. Loans over $1,000,000 may require a larger down payment on the purchase price and up to 100% of rehab depending on experience.

Whether you are a seasoned investor or a first time investor, the 10 percent down rehab loan could be the best program for you as a real estate investor. When you compare the down payment, rate and points this may be better than the 100% financing or even a higher down payment program with lower rates or fees.

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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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Hard Money. There are many types of hard money or fix and flip financing programs available today. The question many investors are asking is, what is the best option for me. This answer really depends on your circumstances because there is no one best option for every investor. That is  one major advantage of working with a hard money mortgage broker who will properly represent your interest and not just sell the program they have.  Most Real Estate Investors want to put no money down for the purchase and get 100% financing of the rehab as well. They also want the lowest interest rate and lowest points and fees. Unfortunately, you can not have both the best terms and no investment. So here are important factors to consider when determining the best  hard money loan purchase rehab program for your situation. Consider these points:

• How much money do you have for the down payment
• How much money do you have for renovation
• How much experience do you have as a fix and flip real estate investor
• Are you working on other projects now
• What is the return on this investment
• Are their additional potential projects you can do before this one is complete
• Do you meet lender guidelines

No Money Down Financing

On the surface this should be the best option always because you are not investing any money for the purchase or rehab of the property. In reality the Hard Money Lender is taking all of the risk while you earn the majority of the profit. For the increased risk the rates and fees are higher. Therefore if you have options the added costs of 100% financing may not be to your benefit. You must weigh the options. Obviously, if you do not have the funds for down payment and renovation or you are working on other projects now, the 100% financing may be your only option. You must realize the Hard Money Lender will either take an equity position or charge higher points and fees. Typical hard money terms are  about 20% to 30% down payment (or more), 10% to 12% interest rate and 3 to 4 points. You may get a lower down payment with similar terms if you have very good credit and substantial experience as a fix and flip real estate investor. In contrast for no money down option you would pay 16% to 18% interest and 8 to 10 points, plus you have a shorter term to complete the project generally 3 to 6 months. These higher rates and fees generally equate to a cheaper equity partner. Most equity partners who put up all the money get at least 50% of the profit.

How to Qualify for 100% Financing Hard Money Loan

Most Hard Money Lenders that offer the 100% financing option look at two major qualification requirements. The first is the property. What is the purchase price, the as is value, the cost of rehab and the after rehab value. If they can realize an after rehab value of no more than 60% to 70% of their total investment of the purchase price and rehab costs (some lenders even cover closing costs if the ARV LTV is good) and their profit is sufficient then the most important criteria is met. Secondly, the HML considers the experience of the investor. How many projects have they completed in the last year or two. Many require three to four recent projects before they would consider a fix and flip investor experienced.

Finally choose the no money down hard money loan if you have no choice or if you are working on other projects and just do not want to deploy your funds. There are investors who only use OPM (other peoples money) and their philosophy is to do as many deals as possible without using their own money. You can make an informed choice.

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Fix and Flip

FIX AND FLIP

That’s right! You can qualify for a fix and flip loan with no credit check and no income verification.  In fact you can qualify for up to 90% of the purchase price and 100% of the renovation  costs. We now require a minimum credit score of 620 and no verification of income. Due to extensive delinquencies this program has been changed.

This Program Now Requires Minimum Credit Score of 620!

Before 2008 Hard Money Lenders regularly made loans to experienced Real Estate Investors solely based on the value of the property. It was rare that a property would lose value. Since the financial market crash things have been very different. Today most rehab lenders do need to know these three things. They want to know:

• The value of the property: The “As Is Value” and The “After Rehab Value”.
• The financial profile of the Borrower: This includes income, assets and credit.
• The experience: Has the borrower, successfully purchased, rehabbed and flipped properties recently.

With adequate collateral an acceptable credit profile and substantial experience, you would think the the borrower would need to really be a conventional buyer, yet that is not true. As many hard money lenders relax some of these guidelines to invest in purchase rehab investors. Though every hard money or private lender has their own guidelines, all require that their be substantial equity in the property.

Covid 19 update

Before the covid 19 pandemic we were funding loans with no minimum credit score. Due to the pandemic the financial markets are tighter and most programs require 650 or better credit score. With this program we can fund loans with credit scores as low as 620 with no experience. The better the credit score and experience, the better the loan terms are.

REHAB LENDERS

Most rehab lenders require borrowers to have skin in the game as well. Those that do not, have the highest rates and the highest fees. This really is understandable because they are taking all the risk. There must be adequate reward for greater risks. That being said these can still be win win situations for the lender and the investor.

Win for the the lender because the higher rate and fees. Win for borrower who has no little or no money or credit, yet with the right property they can make a substantial financial gain.

SPECIAL REAL ESTATE INVESTOR PROGRAM

Yet, with nearly thirty years of mortgage financing experience my favorite program is fix and flip loan where there are there is not a high credit score required, no income asked or verified and with Loan to Values up to 75% of the after rehab value while still offering competitive rates, competitive fees, and 12 month interest only terms.

This program will even consider first time investors while rewarding experience investors with lower rates and even non recourse options.

So you must ask yourself if you are a real estate investor does your lender offer all of these options???

If the answer is no we can help, if the answer is yes compare our rates, points and fees.

This program now requires minimum credit score of 620

For more information call 888-848-3114

Click Here to schedule an loan consultation

Click Here to apply online

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FBC Funding has a wide variety of financing programs for the Estate Investor. These programs range from Residential to Commercial, Fix and Flip to Long Term Rental, Stated Income to Lite Doc to Full Doc, to Individual Properties to Blanket Loans.  As a Broker we do not just market one set of programs to fit all borrowers, but a we tailor the program to meet a borrowers needs.

Here are just a few of the options we offer:

The post FBC Funding Real Estate Investor Programs appeared first on FBC Funding.

As a Real Estate Investor who focuses on residential 1 to 4 unit non owner occupied properties you would know there are three major investment strategies. In the past most investors led by Realtors often focused solely on the buy and hold strategy. This is still a great strategy today. It is the best option for people who are looking for a lasting long term income, even retirement income and or to leave a legacy for their family. Personally, the buy and hold strategy is a major part of my wealth building goals.

But the program I am most excited about is fix and flip investing. This strategy requires you to buy property at a low price, renovate and sell the property for a great profit. By only doing three or four good transactions a year you can make one hundred thousand dollars or more annually. One of the most important elements of making a great living investing in properties that need to be renovated is to have adequate and readily available funding.

There are no options for conventional rehab financing for borrowers looking to finance the purchase and renovation of investment properties. Frankly banks and other conventional sources are missing this boat. That leaves the bulk of this funding to Private Money or Hard Money Lenders. Private Money Lenders can be individuals, small funds or large institutional funds that focus on funding the purchase rehab transactions.

Quite often Private Money Lenders are Asset Based Lenders whose underwriting criteria focus on the value of the property and the experience of the investor. When a Private Lender looks at the value of property they will typically lend a percentage of the “AS IS Value” (AIV) for the purchase and a percentage of the “After Repair Value” (ARV) for the renovation of the property. At one time there pretty uniform lending criteria, but today the amount of money these Hard and Private Money Lenders are willing to lend vary greatly. You can expect terms as low as 65% of AS Is Value or 70% of Purchase Price to as high as 100% of Purchase Price. Pretty standard in the marketplace is 80% of Purchase Price.
Likewise, these funds will lend up to 100% of funds needed to rehab a property limited by the After Rehab Value. Typical maximum ARV limits range from 65% to 75%.

When choosing a lender (or qualifying for a fix and flip loan) there are other important guidelines to be aware of.
To name a few important guidelines you need to know there is:
1) Experience – How projects has the investor successfully completed and how many have been completed recently.
2) Credit – The investors Credit Score and Credit Profile.
3) Financial Strength – How much money does the investor have and how much will they have as a financial reserve.
4) Cash Flow – Will the investor have the ability to make mortgage payments.
5) Character – quite often private lenders search the public records to ensure they are dealing with quality people they are investing there private and often personal money in.

Remember when you are a fix and flip investor there can be great financial reward. There can also be great risk. The purchase rehab private money lender is your partner. They will share the reward and to a greater extent they share in the risks. These Hard Money Lenders are investing in you the fix and flip investor. They are not just making a loan.

FBC Funding is a nationwide financing broker for fix and flip or purchase rehab funding. We have multiple lenders with varying guidelines to help novice and experienced investors meet their financing goals.

Go Here to review our programs.

Go Here for a quick quote.

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