- What are the typical terms for a fix and flip loan?
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Terms vary based on project and borrower credentials, but generally include short-term lengths suitable for the quick turnaround of flipping projects.
- Will my credit score impact my eligibility for a fix and flip loan?
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While credit may be considered, our focus is primarily on the asset’s value and the project’s potential.
- Do I need previous experience in property flipping to qualify?
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Not necessarily, though experience can influence the terms and conditions of the loan.
- How fast can I receive funding for a fix and flip loan?
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We specialize in rapid processing, with the potential to secure funding in as little as a few days after approval.
- What is the minimum value requirements for a fix and flip loan?
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The minimum loan amount is $75,000. For residential fix and flips the maximum loan to after repair value is 70%, and maximum loan to purchase price is 100%.
- Is a licensed general contractor required?
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New construction loans require a licensed contractor. For Fix and Flip loans it will depend on the scope of work. If the renovations are minor, no building permits are needed, and you have documented experience with prior projects, the use of a licensed general contractor may not be required.
- Are loan extensions granted?
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Yes. We will consider extensions provided the loan is in good standing. Extensions typically last 3-6 months.
- How long is the term of your loans?
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Our typical fix and flip loan is 6 months, but we can also complete 9 and 12 month loans for certain projects.
- How is loan value determined?
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Stepup Capital will complete its own comps on the project to arrive at an After Repair Value (“ARV”). Eagle Point Lending will then determine the loan to ARV based on the projects profitability and investor experience. The loan will typically fund at 70% of ARV.
- Is an appraisal required
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Yes, either a full or desktop appraisal will be completed by an Appraisal Management Company. Interior access is required and a market rent addendum will be included. The appraisal requires the itemized budget and that the budget must be approved by us prior to closing.
Minimum Loan Amount : $75,000
Loan to After Repair Value (ARV) : Up to 70%
Loan to Cost (LTC) : Up to 90%
Construction Financing : Up to 100%
Interest Rate : 11-13%
Origination Fee : From 2.0%
Term : 6-12 months
Closing Time : As fast as 48 hours
FICO Score : Minimum 580