Hard Money Fix and Flip Loans or a Line of Credit
We get asked often which is better – Hard Money Fix and Flip Loans or a Line of Credit to rehab the property. The answer comes down to experience and timelines. Hard Money Fix and Flip Loans can close faster with less paper work but they will cost you much more. A Line of Credit is ideal if a borrower has experience. The more experience a borrower has – the lower the rate becomes. Spartan Commercial Mortgage offers a Line of Credit fix and flip loans as well as our fix and hold loans. As well, we have hard money solutions
How it Works
The Fix and Flip/Hold Mortgage Line of Credit allows the borrower/Investor to draw out money as he or she pleases. This is done for the purposes of buying as well as fixing and ultimately flipping the property. Or the property investor may choose to refinance and then rent out the properties! Here is a quick overview of the program:
1. First of all, you do not have to have experience with Flipping properties. Borrowers are required to have liquid reserves (cash, stocks, bonds, Roth IRA) that will cover the monthly loan payments.
2. Secondly, borrowers can purchase multiple properties with this line of credit. The investor line of credit renews automatically once the property is flipped.
3. In addition, the standard length of this program is 12 months. And extensions are available for longer up to 18 months!
4. Furthermore, investor mortgage credit lines are from 50K to 5MM.
5. Finally, the funding of this program is up to 90% LTV (1-4 units) of the purchase and 100% of the rehab costs. The program allows for 75% financing of the final rehabbed property (ARV).
Eligible Properties
– Single-family detached residences (SFR).
– 2-4 unit residences.
– Condominiums are also acceptable.
– Townhomes.
– Planned Urban Developments (PUD).
– Multi-family of 5-20 units (borrower must have experience with 5+ unit properties).
– Mixed Use (25% or less can be commercial space).
Call us today for a free consultation or click here to get pre-approved. We specialize in Fix and Flip funding and are waiting or your call.
Thanks,
Michael Meyer
President Spartan Commercial Mortgage Services
mike@spartancommercialmortgage.com
(860) 876-0572