The Lowdown on Fix-to-Rent Loans...
Deferred Interest Payments
No Appraisal Fee
No Application Fee
No Draw Fees
No lender Point Programs
Why Consider Friendly Fix and Flip Rental Loans?
- We’re a Local & Direct: with over a decade of experience
- Direct Contact with the Underwriter: Monday – Saturday we’re there for you!
- FREE appraisals: We offer Lightning-Fast Pre-Buy appraisals which can help investors avoid a costly mistake
- High Leverage: Borrow based on the After-Repair Value (ARV) of the property, not just the purchase price
- Fast Closings: we can close Lightning-Fast (in as little as 7–10 days) to help you get your deal get ratified
- Lightning-Fast Draws: same day draws on most deals
How Friendly Rental Loans are Structured:
- Optional Payment Deferrals: Subject to underwriting. Saves our investor’s cash flow
- An appraisal is typically not required: We underwrite our loans internally at no charge to our investor
- Short-Term: Typically, 9 to 12 months; the goal is to renovate and close on long term funding as quickly as is possible.
- Fast Funding: Our loans are approved and funded quickly, often verbally in a 5-minute phone conversation followed up by a funding proposal within 24 hours.
- Asset-Based Lending: The approval process is based on the property’s value, although we do look at the borrower’s ability to execute the project as well as the investors’ exit strategy
- Flexible Loan Structure: We can typically cover 80- 90% the purchase price and 100% renovation costs
Friendly Rental Property Loan FAQs
Is it harder to get a rental property loan?
• Getting a hard money loan on a rental property is typically easier and faster when compared to other financing options because the approval process is based more on the property’s value or viability of the overall project rather than credit and income history. Having a clear exit strategy to pay the loan is important factor in our underwriting
What type of loan is the best for rental properties?
• Whether it’s worth funding with a Hard Money Lender depends on your situation, time frame, credit score and ability to manage the loan’s terms effectively. Using a Hard Money Lender is usually worth doing if there is sufficient profit margin in the deal. Our company offers quick and flexible terms to purchase a property compared to other financing options and requires fewer documents.
Will you extend the loan term if needed?
• We commonly extend loan terms if needed
What type of properties do you lend on?
• Common types are: Single Family residences, 1–4-unit properties, apartment buildings.
Can I get a hard money loan if I have a low credit score?
• A good credit score is typically important for us to finance a rental property because it has an impact on the ability of the investor to use refinance into a longer-term loan as an exit strategy.
Is there a limit to the number of deals that I can buy?
• No. Each deal stands on its own.
How much money do I have to put in the deal?
• The down payment for hard money lenders typically ranges from 10% to 40% of the property’s purchase price. We are usually at 20% down payment. The exact amount depends on the project, the borrower’s creditworthiness, experience and the overall property value.
How quickly can you close?
• We can typically close within 10 days, sooner depending on the situation.
What documents do I need to get started?
• A copy of the ratified purchase agreement, email address of the closing agent, a verbal budget amount for the renovation costs and we’re set to go.
Do you order an appraisal?
• Our appraisals are typically done in-house and at no charge to our investors. In some instances, an appraisal may be required depending on a given property.
Does the loan have a prepayment penalty?
• Because we do not charge lender points, we do ask for a 4-month minimum interest.
Why a HARP Loan?
If you’re underwater on your conforming, conventional mortgage, you may be eligible to refinance without paying down principal, and without having to pay mortgage insurance.
- Fixed Rates
- Adjustable Rate Mortgage (ARM)
- Keep Your Home
- Terms from 5 to 30 Years
Get Your FREE Fix-to-Rent Loan Quote Now!