What is a Fix-N-Flip Loan?
A fix-and-flip loan is a short-term mortgage used to acquire a property quickly. Generally this financing is used until permanent financing is found, the home is resold, or it is rehabilitated and then resold.
Who needs a Fix-N-Flip Loan?
Property investors that are fixing and flipping properties are the most common customers of LendingOne fix-and-flip loans. Anyone buying properties on market or in distress, rehabbing, and reselling is a potential customer for us.
Do you refund the repair costs?
Yes, we specialize in fix-and-flip lending that includes Repair Costs. We will lend up to 85% of the purchase price and up to 100% of the rehab costs.
How are construction draws handled?
Our borrowers request a draw. Within 48 hours, one of our licensed contractors inspects the work completed. Within 24 hours after the inspection, the funds are released. There is a $150 charge for each draw that is deducted from the draw amount. We don’t make any money on construction draws. The cost of the draws go directly to our contractors to ensure that the work is done properly and within code.
What is a Rental Loan?
A Rental Loan is a medium to long term loan for income-producing rental investment properties. It is underwritten primarily against the property value and the cash flow of the property itself, with less emphasis put on traditional credit factors.
Who needs a Rental Loan?
This loan is tailored towards both small and larger operators who have one or more rental properties that are successfully producing cash flows sufficient to pay a mortgage. We offer both purchase and refinancing options.
How much documentation is needed?
Depending on the loan, we collect different documents. Our systems may ask for documentation not applicable to you, in which case you do not need to provide us that information. However, in general, the more information you can provide, the more opportunities exist for us to uncover the right financing program for your situation.
How does the pre-qualification process work?
Our pre-qualification process allows you to quickly gauge how much funding you are eligible to receive for your real estate investment project. We will require you, either through our online application or on the phone with one of our loan consultants, to provide the following information: Your experience in real estate investing. (how many deals have you done, rental vs fix-n-flips?) Total amount of money available to invest in your real estate projects. Your overall credit profile. Your total income.
Do you have a minumum FICO score needed?
Our Fix and Flip Loans require a 600 FICO minimum score and our Rental Loans require a 640 FICO minimum score; however, our borrower’s credit score is only one of many factors taken into consideration when underwriting the loan.
How do you determine the loan amount?
Fix and flip loan leverage are determined by the borrower’s experience. We could potentially lend up to 90% of the total cost of the project not to exceed 75% of the after repair value. *