Fix-and-Flip Loans
Whether you're a first-time flipper or a seasoned real-estate investor, you're looking for the best financing options. There are many kinds of fix-and-flip loans to consider. Within this week's blog, we'll go through a few financing options.
If you've more questions regarding these and other mortgage options, contact Associates Mortgage loan of Florida, Inc. We use clients in Orlando, Tampa, Sarasota, and surrounding Florida. We have financed countless local fix-and-flip investments and can help guide to you through the procedure.
Hard Money Loans
Hard money loans are an alternative choice to conventional mortgages. These short-term loans are secured through the property being purchased, instead of on a borrower's financial status. Hard money lenders help clients purchase, renovate, and sell the home to make money. Hard money loans have high rates of interest and clients typically eliminate them within 1-3 years (after the sale of the fix-and-flip investment property).
Cash-Out Refinance
Cash-out refinance is a very common loan choice for clients who have existing investment or personal property with equity. Fix-and-flip investors use cash-out refinance to extract equity within an existing property and employ it to purchase a new investment property. They Typically, you'll need a minimum of 30-40% equity inside your existing property to obtain approved with this kind of financing. Cash-out refinance typically have lower rates of interest than hard money lenders.
HELOC
A home equity line of credit (HELOC) supplies a stream of financing for a fix-and-flip investment. Like a cash-out refinance, HELOC is really a loan by which existing equity is used for brand new financing. HELOC can only be issued with an owner-occupied property, instead of a good investment property. It may be issued in addition to an existing mortgage if a client has a minimum of 15% home equity. HELOC is a great fix-and-flip financing option because it provides a continuous stream of credit as different rehab costs come up.
Property Line of Credit
A property credit line is sort of a HELOC in that it provides a consistent stream of funding for rehab projects. Unlike a HELOC, however, it's created specifically for investment properties, and can simply be utilized on non-owner-occupied properties. This is a favorite investment solution among our experienced fix-and-flip clients.
Find the Financing Solutions You Need for Fix-and-Flip Success
When you need to find out more about fix-and-flip loans, the mortgage professionals at Associates Mortgage loans of Florida, Inc., have the answers you need. Our nonconventional mortgage solutions have helped countless clients in Orlando, Tampa, Sarasota, and surrounding Florida earn great returns on their own investment properties. Affect refinance and get started today!