First Bridge Lending is introducing a new way for investors to finance their flip projects: the Higher LTV Investor Flip Loan.
With a flip loan, an investor or buyer can use an acquisition bridge loan to get short-term financing on a single or multi-family property that needs repairs and renovations.
The higher LTV investor flip loan features:
Higher LTV than FBL flip loans: up to 80% of purchase price
Up to 75% LTC
65% ARV or less
Renovation dollars lent on a case-by-case basis
Flip property types typically don’t meet the qualifications of traditional mortgage lenders, so the acquisition bridge, or flip loan, is a good way to purchase the property quickly, make the necessary renovations and then sell the home for loan repayment and profit (or refinance with long-term mortgage once the property meets those qualifications post renovation).
This new higher LTV loan product requires less down payment, which frees up more working capital for remodeling and renovations. Renovation dollars are lent based on the value of the property and the experience and qualifications of the borrower. Property appraisal required for higher LTV loans.
The borrower partnered with their father, who has flipped 4 homes in the last 6 years, to purchase this SFR for their first joint flip. The property is in a good location, though dated finishings and repairs will require $60,500 in improvement costs.
The borrower is an experienced investor who has completed several flips with family. They purchased the 1,160 SF detached condo for $480,000 and plan to complete renovations with an estimated $40,000 remodeling budget.
The borrower is an experienced investor who has completed 18 flips in the last 6 years. They purchased the 2,517 SF 4 Bed/2 Bath SFR for $672,000 and plan to complete cosmetic renovations with an estimated $60,000 budget.