Fix and Flip loans are designed for investors looking to maximize their liquidity, while they minimize out-of-pocket expenses for both rehab and construction costs. The rehab financing can even work as a reimbursement program, putting money back in the investors pocket as work is completed. Simply put, Fix and Flip loans are designed to help investors maximize your rehab budget.
Loans typically don't require W-2s, taxes, or paystubs. The reason being is the mortgage is typically underwritten based upon the DSCR or Debt Service Coverage Ratio. The DSCR looks at the cash-flow of the property if it's rented and weighs that against the monthly mortgage payment.
The loans can go down to a 600 credit score, all while financing up to 100% of your rehab budget, and 85% of the purchase price or loan-to-value. There's even pricing discounts for experienced investors but fear not, there are programs for first-time flippers also.