Fix-and-Flip DSCR loans are specialized financing solutions designed specifically for real estate investors who buy properties, renovate them, and quickly resell them for a profit. These loans understand the unique needs of flippers and offer flexible terms to help you succeed in this fast-paced market.
Fast Approvals: Time is of the essence in fix-and-flip projects. DSCR loans often have streamlined underwriting processes, leading to quicker approvals so you can seize opportunities without delay.
Flexible Terms: Enjoy loan terms tailored to the short-term nature of fix-and-flip investments, including options for interest-only payments or flexible repayment schedules.
No Income Verification: Qualify based on the property's after-repair value (ARV) and your experience as a flipper, not just your personal income or tax returns.
Higher Loan Amounts: Potentially borrow more to cover both the purchase price and renovation costs, maximizing your investment potential.
Funding for All Stages: Secure financing for all phases of your project, from acquisition to renovation to closing costs.
Rehab Budget Included: Some loans include funding for your renovation budget, simplifying the financing process.
While specific requirements vary by lender, here are some common factors to consider:
Debt Service Coverage Ratio (DSCR): While the DSCR is typically used for rental properties, some lenders may consider it for fix-and-flip loans based on projected resale value and market conditions.
After-Repair Value (ARV): The estimated value of the property after renovations is a key factor in determining the loan amount.
Experience: Lenders may consider your experience as a fix-and-flip investor, including your track record of successful projects.
Credit Score: A good credit score is essential, generally 680 or higher, to demonstrate creditworthiness.
Down Payment: Down payment requirements typically range from 20% to 30%, but may vary depending on the lender and the project.
Property Type and Value: Lenders will assess the property's potential after renovation and its appraised value.
