Fix & Flip Investor Loans

Key Factors That Impact Your Rate

Loan-to-Value (LTV)

• Lower leverage = lower rate

• 60–65% of After-Repair Value (ARV) → best pricing

• 70–75% ARV → higher end of the range

Property’s Current Condition

• Move-in ready or light rehab → lower rates

• Moderate rehab required → mid-range pricing

• Heavy rehab or distressed condition → higher rates due to execution risk

Credit Score

• 720+ FICO → strongest pricing

• 680–719 → moderate rate adjustments

• 600–679 → higher rates and tighter terms
  (Most fix & flip programs have a 660 minimum)

Cash Reserves

• Strong liquidity reduces risk

• 6+ months of PITIA and rehab reserves improve pricing

• Minimum reserves may result in higher rates or required interest escrows

Investor Experience

• Proven track record = better pricing

• 5+ completed flips → best execution

• 1–4 flips → moderate pricing

• First-time flippers → higher rates and stricter terms

Origination Costs (Reflecting Higher Risk)

Fix & Flip loans typically carry higher origination fees due to:

• Short-term structure

• Construction oversight

• Market and execution risk

Origination Points Pricing Impact:

• 1.25–2.0 Points: Standard Bridge Loan Origination Cost

• 2-2.5 Points: Moderately more risky deal structure

• 3+ Points: Origination rarely goes this high but can on a deal to deal basis depending on overall risk exposure

Why Investors Use Fix & Flip Loans

• Fast closings (48-72 Hours)

• Asset-based approval

• Rehab funds available in draws

• Designed for short-term profit strategies