FAQ

Frequently Asked Questions

 

1. “What is a fix and flip loan?”

 

It is a short term loan where the borrower / buyer puts up equity (sometimes borrowed) and a lender will normally lend on the ARV value (After Repair Value) of the property and the borrower normally will sell the property to make a profit on the transaction.

 

2.  “Are all fix and flip loans the same?”

 

No. Some require financials, some don’t. Some have higher rates. Some do not require credit reports.

 

3.   “Are you the lender?”

 

No, we broker loans to lenders that fund fix and flip loans

 

4.   “How long will it take to get an decision for funding?”

 

Most loan are approved within 48 hours as long as all required documentation is available.

 

5.   “How long will it take to close our loan?”

 

Most loans are approved and closed within 10-14 days

 

6.   “Are there any upfront fees?”

 

We do not charge any upfront fees.  Most lenders do not other than for third party reports (appraisal / title)

 

7.   “Can you do cash-outs?”

 

Yes, cash-outs are available.

 

8.   “Are fix and flip loans available in all states?”

 

Every state has some sort of fix and flip financing available.

 

9.  “What documentation is necessary?”

 

Each lender has their own list of documents.  Usually a 1003 (or lender’s own app), a one page application describing your transaction, contractor bid for rehab with scope of work and cost, credit report with all three scores.  Some lenders will require personal tax returns. Some will require personal and business returns.

 

10. “What type credit report do I need to pull”

 

You will need all three credit repositories and scores from each.

 

11. “Are all investment property types eligible?”

 

Single family residences (investment only), condos, townhomes, 2-4 units and PUDs.

 

12. “Do you require personal tax returns?”

 

Some require one years. Some require two years. Some require none.  Consult us for the specific program.

 

13. “Do you require business returns?”

 

A few lenders require them, but most do not.

 

14. “Do you require other financials such as profit/loss statements, accounts payable, accounts receivable?”

 

Most do not, although a real estate asset list will be required if the borrower owns substantial real estate holdings.

 

15. “Can I get a fix and flip loan if I’ve had a personal or business bankruptcy?”

 

Yes, depending on the lender.

 

16. “Can I get a fix and flip loan if I’ve had repossessions?”

 

Yes, depending on the lender.

 

17. “Can I get a fix and flip  loan if I’ve had a foreclosure?”

 

Yes, depending on the lender.

 

18. “Can I get a fix and flip loan if I’ve had a short sale?”

 

Yes, depending on the lender.

 

19. “Can I get a fix and flip loan if I’ve had a loan modification on my home or commercial property?”

 

Yes, depending on the lender.

 

20. “Can I get a fix and flip loan if I’ve had a charge off or collections on my credit report?”

 

Yes, depending on the lender.

 

21. “Can I get a fix and flip loan if I’ve had a late pay on my mortgage?”

 

Yes, depending on the lender.

 

22. “How many creditors do I need to show on my credit report?”

 

That is lender specific.  Most like to see at least three trade lines.

 

23. “Will the lender personally contact me about my loan?”

 

That is lender specific.  Some will. Some will not.

 

24. “Can closing costs be rolled into my fix and flip loan?”

 

Many can as long as it does not exceed the Loan To Value (LTV) maximum.

 

25. “Will the lender escrow taxes and insurance?”

 

Many will.

 

26. “How old can documentation be?”

 

Depending on the lender and depending on the document request, usually no more than a few months old

 

27. “Do you have to have an environmental done on our property?”

 

Usually no

 

28. “Do I have to personally guaranty a fix and flip loan?”

 

Some lenders do require personal guarantees.

 

29. “Can I live in a small town and get a fix and flip loan?”

 

In many cases, yes.

 

30. “Can you have subordinate financing on a fix and flip loan?”

 

With some lenders, yes.

 

31. “Can you use gap funding for equity on a fix and flip loan?”

 

With some lenders, yes

 

32. “How does your company get paid?”

 

In some cases we are paid a referral fee of 1.0% of loan proceeds by a lender. When a lender pays no referral fee, the borrower will pay us an origination fee of normally 1.0%, depending on the size of the loan.

 

Fix And Flip Loans contact X 75