Get Expert Investment Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
If you’re considering entering the potentially lucrative world of house flipping, you’re probably wondering, “What credit score do you need for a fix and flip loan?”
Fix and flip loans are designed to help investors purchase, renovate, and resell properties quickly, maximizing profits in the process.
The process can also be risky for the borrower and the lender. Surprisingly, you don’t need a perfect credit score to land a fix and flip loan approval.
Qualify for a fix and flip loan.The following are large multi-state fix and flip and hard money lenders and their credit score requirements.
Keep in mind that this is a very limited survey of lenders. You may have fix and flip companies near you that will help those with lower credit scores. Still, this will give you an idea of general guidelines in the market today.
Here’s an overview of Park Place’s fix and flip requirements:
Viva Capital Group offers fix and flip loans tailored for real estate investors seeking short-term financing to acquire, renovate, and sell properties. Here’s a snapshot of the key requirements for Viva Capital’s fix and flip loans:
Lima One Capital can provide fix and flip loans to those without prior flipping experience, but they must have a minimum credit score of 660, and the financed property should not require extensive rehab work, such as structural repairs.
They may not offer the lowest rates or fees among hard money lenders (starting at 7.5%), but are still rated as one of the top hard money lenders for fix and flip loans.
Additionally, their maximum loan amount is capped at 70% of the ARV, potentially requiring borrowers to cover a larger share of repair costs.
Here’s an overview of Lima One Capital’s Rates & Terms:
For hard money lenders offering low down payment financing, competitive interest rates, and 100% coverage of renovation costs and fees for your next fix and flip, consider RCN Capital.
RCN Capital’s after repair value (ARV) loans finance up to 85% of your fix-and-flip property’s purchase price and 100% of renovation costs, not exceeding 67.5% of the property’s after repair value (ARV).
With interest-only loan rates starting at 10.24% for experienced investors and terms up to 12 months, this loan accommodates various property types, including condos, townhouses, single-family and multifamily homes, and mixed-use properties.
RCN Capital Rates & Terms for 2023:
Kiavi has risen in prominence for hard money loans due to its transparency in fees, financing options for first-time investors, competitive rates, large loan amounts, and quick funding.
Their bridge loans cater to fix-and-flip investors, offering up to $1.5 million for various property types, including single-family homes, 2-4 unit properties, condos, and PUDs.
Kiavi simplifies the application process by not requiring income verification or property appraisals, expediting approval and funding. They accommodate both new and experienced investors, rewarding those with more experience through competitive pricing and dedicated account managers for faster closings.
AMZA Capital offers a competitive fix-and-flip credit line of up to $50 million, making it an ideal choice for experienced investors looking to fund multiple projects simultaneously.
The credit line is available nationwide and caters to various property types, including single-family homes, condos, townhomes, and multifamily properties with fewer than 20 units.
For those seeking term loans, AMZA Capital provides fix-and-flip and buy-to-rent loans up to $2.5 million. First-time investors can access funding by working with a mentor and a licensed contractor. Loan terms extend up to 24 months with a possible 12-month extension for eligible borrowers.
In conclusion, selecting the right lender for your fix and flip project is crucial for first-time investors.
By comparing the top lenders and their offerings, you can secure competitive rates, terms, and requirements tailored to your needs.
Remember, a successful property flip begins with proper financing. So, research diligently, choose wisely, and embark on your investment journey with confidence.
Start your property flip with the right financing.Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.