New! After Repair Value (ARV) Fix and Flip Program
Our latest product for real estate investors offers financing for:
- Up to 90% of the purchase price
- Up to 90% of the rehab costs
- Collateral: 1-4 family Non Owner Occupied residential real estate
- Term: 12 Months
- Loan Amount: $75K to $2.5M
- LTV: Up to 65% of the After Repair Value (ARV
- Credit Score: 650 minimum
Experience: Prior rehabs
Lending Area: Nationwide (except AZ, SD, VT, ME, MN)
Line of Credit Program for Real Estate Investors
We have within our funding sources a Line of Credit (LOC) with a twist. Our LOC comes with an implicit preapproval for an 80% first mortgage on any property (non-owner occupied)the investor wants to buy.
The LOC is based on the equity on the property the borrower owns. For example: If the borrower gets a $200,000 LOC against properties he or she owns, then it is really worth $1,000,000 in purchasing power (assuming it’s not used for rehab or closing costs)
Here’s an example of how it works:
Borrower finds $100,000 house. Lender puts a 1st mortgage against the house for $80,000. The investor draws $20,000 from the LOC and pays the rehab and closing costs out-of-pocket. There’s still $180,000 left on the line of credit, so the investor can repeat this 9 more times until he or she has the $200,000 LOC maxed out and $800,000 in new mortgages – a $1,000,000 portfolio starting with just $200,000 in equity.
Note: Results may vary depending on how much, if any, is drawn against the line for rehab expenses and closing costs. This product is ideal for flipping real estate.
Rate: 1% a month on the balance
Term: 1 year
Prepayment Penalty: None
Note: 1st mortgage interest is also same as specs above.