Understanding a Fix and Flip / Rehab Loan
If you are purchasing a property and want to fix it up and sell it quickly, then you shouldn’t be going down the traditional real estate loan route. After all, these traditional lending firms’ intentions do not match yours. After all, they are meant more for primary residences or long-term commercial properties and require a lengthy application process. No, what you need is a Fix and Flip loan, also often referred to as a Rehab loan. This is a type of short term, hard money loan with a fast and simple approval process. Instead of relying on your personal details and credit history, our lending experts instead look to the actual value of the property / assets in order to determine an appropriate loan amount.
It is also important to understand that a lot of properties that are eligible for Fix and Flip loans may not fall under FHA guidelines and therefore will not be able to secure a federal loan. But that’s okay, because this is why hard money loans exist in the first place. It’s also important to to understand that our Fix and Flip lenders in Texas do not require a great credit score or completely clean credit history. Short sales are okay, and loans of up to 90 percent of the property value are often approved. In fact, the only real requirement for a Fix and Flip loan is that you are able to pay back the loan within the specified terms of the agreement– something you will not have a problem with if the property is fixed up fast and then sold at the higher intended value. There is no pre-pay penalty, and you can actually use the loan for as many properties as you like.
Taking the Next Step
Because of the fast and easy application process and quick approval time, there really is no need to wait on applying for a Texas Fix and Flip / Rehab loan once you decide it’s the right fit for your needs. Our lending experts often approve our clients within 24 hours and can get you the funds shortly after that. So give us a call today to start getting the money you need.