Frequently Asked Questions About Investor Loans

A fix and flip loan is a short-term investment loan used to purchase and renovate a property with the intention of selling it or refinancing it after improvements are complete. These loans are structured around the property’s value and project scope rather than traditional income documentation.

Fix and flip loans typically finance a portion, if not all, of the purchase price and renovation costs. Rehab funds are released in stages or draws as work is completed, and the loan is repaid when the property is sold or refinanced.

Many fix and flip loans can close significantly faster than traditional mortgages, depending on the project details, borrower experience, and documentation readiness. Typically, we close fix and flip loans in 10–15 days, and sometimes in as little as 5 days. These timelines are heavily reliant on borrower and third-party response times. In other words, the lenders can only move as quickly as you and your team can.

Most fix and flip loans focus on the deal itself rather than personal income or debt. Traditional tax returns are often not required, making these loans attractive to self-employed investors.

ARV stands for After Repair Value — the estimated market value of the property once renovations are completed. Fix and flip loan amounts are often based in part on ARV rather than just the purchase price.

Yes. Fix and flip loans can be used to refinance an existing investment property, either to complete renovations or to access capital before selling or transitioning to long-term financing. Mid-construction refinancing is also possible. In some cases a “cash out” portion of existing equity can be accessed in addition to rehab funds held back within the same loan.

Yes. Many investors use fix and flip loans for the Buy, Rehab, Rent, Refinance, Repeat (BRRRR) strategy, refinancing into long-term rental financing once renovations are completed.

Experience requirements vary by loan program. Some lenders require previous projects, while others offer options for newer investors with strong deals. Typically, the more experience a borrower has, the better the loan terms that will be available, such as lower rates and fees.

Fix and flip loans are commonly used for single-family homes, townhomes, 2–4 unit multifamily properties, and other residential investment properties needing renovation. Several of our capital resources also allow 5+ unit multifamily properties but do require proven experience with this collateral type. All properties must be non-owner-occupied. Fix and flip lenders lend on investment properties only.

Yes. Most fix and flip loans include 100% of the renovation or rehab funds, which are disbursed in stages as work is completed and inspected.

Fix and flip describes what the loan is for. Hard money describes the type of lender. Most fix and flip loans are funded by private or hard money lenders, so the two overlap. The real differences are in each program: rate, fees, leverage, how rehab funds are released, and term. We compare programs from multiple private lenders to find the best fit for your project.

Credit score requirements vary by program and lender. Approval is often based on the overall strength of the deal rather than credit alone. Generally speaking, most lenders require a mid-FICO of 660–680 or higher to qualify. However, some programs have no FICO requirements at all.

Most of the time, yes. Reserves show that a borrower can close the loan and also begin renovations with cash on hand, so some work can be completed before requesting the first draw for reimbursement. There are exceptions, but the requirement is usually a percentage of the rehab budget plus 3–6 months of interest-only payments, in addition to funds for the down payment and closing costs/fees. This detailed information will be provided on each quote that is issued to you.

Yes. However, there are very strict rules to maintain your IRS tax shelter when using 1031 exchange funds. We will work closely with the borrower and their 1031 intermediary to ensure the property and lender’s note meet the IRS requirements. Only a few additional documents will be needed from the borrower to ensure these requirements are met. Please consult your tax advisor about your specific situation.

Yes, but very few lenders will allow funds from an SDIRA to ensure all tax laws are maintained. Using SDIRA funds means that no personal guarantee can be included in the lender’s loan terms and that the loan is non-recourse. Lenders will usually limit max purchase Loan-to-Value (LTV) to 65% when using SDIRA funds. Additionally, all funds for down payment and closing costs/fees must come from the SDIRA. No personal funds can be mixed. We will work closely with your SDIRA custodian to ensure we maintain the IRS requirements. Please consult your tax advisor about your specific situation.

Yes. Fix and flip loans are commonly issued to LLCs or business entities used for real estate investing. In fact, most lenders prefer an entity on title. Most lenders are happy to lend to LLCs, S-Corps, C-Corps, and even a few trust structures such as an SDIRA Trust or Revocable Living Trust.

Fix and flip loans are short-term loans, typically 6 to 24 months depending on the project and exit plan. Common terms are 6, 12, 18, or 24 months.

For Purchase Transactions:

• Full property address of the property you intend to purchase
• The purchase price you will offer
• Estimated renovation budget and brief overview of the scope of work (light rehab versus moving walls, fixing foundations, adding square footage, etc.)
• Expected ARV once renovations are completed
• Timeline to complete the renovations
• How title is going to be held (individual, entity, or trust)
• Borrower’s experience level and exit strategy (sell or refinance to hold as a rental)
• Borrower’s estimated FICO scores
• Borrower’s current liquidity available

For Refinance Transactions:

• Full property address of the property you intend to refinance
• The purchase price and date of original acquisition
• Amount of rehab spent on improvements since acquisition, if any
• Current debt owed on the property
• Estimated renovation budget and brief overview of the scope of work (light rehab versus moving walls, fixing foundations, adding square footage, etc.)
• Expected ARV once renovations are completed
• Timeline to complete the renovations
• How title is currently held or will be held at closing (individual, entity, or trust)
• Borrower’s experience level and exit strategy (sell or refinance to hold as a rental)
• Borrower’s estimated FICO scores
• Borrower’s current liquidity available

For Mid-renovation Transactions, we’ll need all the same information as a refi but also:

• Estimated as-is value of the property in its current condition
• Amount of rehab spent so far
• Amount of rehab budget remaining to complete
• A detailed narrative explaining why the project is incomplete
• Current photos or videos of the project as it currently sits

The first step is completing our loan intake form. Once submitted, we’ll review your project details and contact you directly to discuss financing options.

A new construction loan is a financing option used to fund the building of a property from the ground up. These loans are commonly used by real estate investors and developers to cover construction costs and, in some cases, transition into long-term financing after completion.

New construction loans are typically funded in stages, known as draws, as construction milestones are completed. Funds are released after inspections confirm progress, helping manage risk during the build process.

Yes. New construction loans are commonly used for investment properties, including rental properties and speculative builds. Eligibility depends on the project scope, property type, and lender guidelines.

Some new construction loan programs allow financing for both land acquisition and construction, while others require the land to be owned separately. This depends on the specific loan structure and lender requirements.

Many new construction loans are short-term and designed to fund the build phase only. After construction is complete, investors often refinance into permanent financing or sell the property as part of their exit strategy.

Down payment requirements vary by lender and loan program. In most cases, investors are expected to contribute some capital toward the project in addition to loan proceeds. Typical leverage is 65–90% loan-to-cost (LTC) with 70–75% loan-to-ARV (LTARV). Actual leverage depends heavily on the scenario’s ratios and on verifiable borrower experience.

Depending on the loan structure, borrowers may make interest-only payments during the construction period. Payment terms vary by program.

New construction loans may be used for:

• Single-family homes
• Multifamily properties
• Mixed-use properties
• Small residential developments

Eligibility depends on project size, location, and lender guidelines.

Most lenders prefer borrowers with prior construction or development experience, while others may allow first-time builders if the project is supported by a qualified builder or team. Nearly all lenders count only projects where the borrower was on title. Experience as only a General Contractor typically does not count as qualified experience.

Timelines vary depending on project complexity, documentation, and appraisal requirements. Residential builds typically close in 2–3 weeks, and commercial developments typically take 3–6 weeks.

Yes. Many investors refinance completed construction projects into long-term financing once the property is stabilized or rented.

For Purchase Transactions:

• Full property address of the property you intend to purchase
• The purchase price you will offer
• Estimated construction budget and brief overview of the scope of work (number of units, bed/bath counts, garages, stories, etc.)
• Expected ARV once construction is completed
• Timeline to complete the construction
• How title is to be held (individual, entity, or trust)
• Borrower’s experience level and exit strategy (sell or refinance to hold as a rental)
• Borrower’s estimated FICO scores
• Borrower’s current liquidity available

For Refinance Transactions:

• Full property address of the property you intend to refinance
• The land purchase price and date of original acquisition
• Amount spent on land improvements since acquisition, if any
• Current debt owed on the property
• Estimated construction budget and brief overview of the scope of work (number of units, bed/bath counts, garages, stories, etc.)
• Expected ARV once construction is complete
• Timeline to complete the construction and have certificates of occupancy (COs) issued
• How title is currently held or will be held at closing (individual, entity, or trust)
• Borrower’s experience level and exit strategy (sell or refinance to hold as a rental)
• Borrower’s estimated FICO scores
• Borrower’s current liquidity available

For Mid-construction Transactions, we’ll need all the same information as a refi but also:

• Estimated as-is value of the property in its current condition
• Amount of the construction budget spent so far
• Amount of the construction budget remaining to complete
• A detailed narrative explaining why the project is incomplete
• Current photos or videos of the project as it currently sits

The first step is completing a loan intake form with basic information about the project, property, and investment goals. From there, loan options and next steps can be reviewed.

A DSCR loan (Debt Service Coverage Ratio loan) is a type of investment property loan that allows real estate investors to qualify primarily based on the property’s rental income rather than personal income, tax returns, or employment history.

DSCR loans work by comparing a property’s monthly rental income to its total monthly mortgage payment (including principal, interest, taxes, insurance, and association dues if applicable), known as PITIA. If the rental income is sufficient to cover the payment, the property may qualify.

DSCR stands for Debt Service Coverage Ratio. It is a calculation used by lenders to measure whether a property generates enough income to cover its debt obligations.

A DSCR of 1.0 or higher typically means the property’s rental income covers the mortgage payment. Some programs allow ratios below 1.00, typically with lower leverage or higher pricing, while others may require a higher DSCR depending on loan terms and risk factors.

Typically, 1–8 unit DSCR lenders will use Gross Rents / PITIA to determine the ratio and have a minimum of 1.00. 9+ unit lenders will use NOI / PITIA to determine the ratio and have a minimum of 1.25 or higher.

Yes. DSCR loans are commonly used to purchase single-family, multifamily, or mixed-use investment properties where rental income is the primary qualifying factor.

Yes. DSCR loans can be used to refinance existing investment properties, including rate-and-term refinances or cash-out refinances to access equity for future investments.

No. DSCR loans do not require traditional income documentation such as W-2s or tax returns. Qualification is based solely on the property’s current or potential rental income and the borrower’s credit profile. Personal earnings are not a factor.

No. DSCR loans focus on property cash flow, not employment status, making them popular with self-employed investors or those with complex income structures.

DSCR loans are commonly used for:

• Single-family rental properties
• 2–8 unit multifamily properties
• Condos and townhomes (subject to lender guidelines)
• Small residential portfolios

Property eligibility varies by lender.

9+ unit multifamily property lenders do use the DSCR as a qualifying piece of their loans but these are considered commercial loans and have far more requirements than the residential DSCR loan.

There are some lenders who will do DSCR loans for manufactured homes, mobile homes, and mixed-use properties, but resources are limited and terms are usually less favorable compared to standard collateral types.

Rental income is usually determined by the lower of the two:

• Current lease agreements, or
• Market rent as determined by an appraisal (rent schedule)

Lenders use this information to calculate the property’s DSCR.

Commercial properties will use the actual rent revenues received over a trailing period of 3–12 months along with actual expenses to determine the net operating income. The NOI / PITIA will determine the ratio for such properties.

Credit score requirements vary by lender and loan program, but many DSCR loans are available to borrowers with mid-range credit profiles. Stronger credit may result in better loan terms. Most lenders will require a minimum mid-FICO of 660–680. There are some lenders that will allow lower scores, but leverage and rates worsen considerably.

Most of the time, yes. Reserves ensure the borrower can make loan payments should the property become vacant or not get leased right away, if vacant at closing. There are exceptions, but the requirement is usually 3–6 months of the total mortgage payment, in addition to funds for the down payment and closing costs/fees. This detailed information will be provided on each quote that is issued to you.

Yes. However, there are very strict rules to maintain your IRS tax shelter when using 1031 exchange funds. We will work closely with the borrower and their 1031 intermediary to ensure the property and lender’s note meet the IRS requirements. Only a few additional documents will be needed from the borrower to ensure these requirements are met. Please consult your tax advisor about your specific situation.

Yes, but very few lenders will allow funds from an SDIRA to ensure all tax laws are maintained. Using SDIRA funds means that no personal guarantee can be included in the lender’s loan terms and that the loan is non-recourse. Lenders will usually limit max purchase Loan-to-Value (LTV) to 70% when using SDIRA funds. Additionally, all funds for down payment and closing costs/fees must come from the SDIRA. No personal funds can be mixed. We will work closely with your SDIRA custodian to ensure we maintain the IRS requirements. Please consult your tax advisor about your specific situation.

No. DSCR loans are available to both new and experienced real estate investors, as long as the property and borrower meet lender guidelines.

Yes. Some lenders allow DSCR loans for short-term rental properties, but qualification methods and income calculations may differ. Eligibility depends on the lender and property type.

Closing timelines vary, but DSCR loans often close in a timeframe similar to other non-QM investment loans, assuming documentation and appraisal requirements are met promptly. Generally speaking, expectations of between 25–35 days to close from submission is normal.

If a Purchase Transaction:

• The full address of the property you intend to purchase
• The purchase price or amount you will offer
• Current rents in place, or an estimated amount of rent that will be collected if currently vacant
• Current annual property taxes
• Current annual insurance
• Current HOA fees, if any
• How title will be held (as individual, entity, or trust)
• Borrower’s estimated FICO scores
• Borrower’s experience owning or selling rentals in the past 36 months
• Borrower’s current liquidity

For Refinance Transactions:

• The full address of the property you intend to refinance
• The purchase price you paid and date of original acquisition
• Amount of rehab spent on improvements since acquisition, if any
• Current debt owed on the property
• Current rents in place, or an estimated amount of rent that will be collected if currently vacant
• Current annual property taxes
• Current annual insurance
• Current HOA fees, if any
• How title is currently held (as individual, entity, or trust)
• Borrower’s estimated FICO scores
• Borrower’s experience owning or selling rentals in the past 36 months
• Borrower’s current liquidity

You can start by completing a loan intake form with basic information about the property and your investment goals. From there, you’ll be contacted to review options and next steps.

We finance a wide range of commercial collateral, including apartment buildings and complexes, mixed-use buildings, warehouses, office buildings, retail, restaurants and bars, hospitality, self-storage, automotive, medical buildings and care facilities, raw land, developed land, and houses of worship. This is not a complete list, so if your property type is not listed, ask us.

A bridge loan is short-term financing that carries a borrower from one point to the next, such as acquiring a property, completing renovations, or leasing it up to stabilization, before selling or refinancing into long-term debt. A permanent loan is long-term financing, typically for a stabilized property. Bridge loans come from private money lenders, hedge funds, family offices, REITs, and investor pools. Permanent loans come from agency commercial, institutional, and private lenders.

Debt service coverage ratio (DSCR) is a factor in commercial underwriting, but it is not the primary way commercial loans are qualified, and a commercial loan is not a “DSCR loan.” Commercial DSCR is calculated from net operating income (NOI), not gross rents, and EBITDA-based cash flow is becoming more common. Lenders also weigh the property, the borrower, and the business plan. For 1–8 unit rentals qualified mainly on rental income, see our DSCR loans.

Bridge loans can reach up to 85% loan-to-cost (LTC), permanent loans up to 80% loan-to-value (LTV), and SBA loans up to 90% LTV, depending on the scenario. Recourse, limited-recourse, and non-recourse options are possible on all programs, depending on the scenario.

Commercial bridge loans can take about 2 to 10 weeks to close, and permanent loans about 6 weeks to 10 months, depending on the property type, loan size, borrower, and lender requirements. We give you a realistic timeline for your deal up front.

Most of our commercial loans are for investment properties. We also broker SBA loans, which can finance owner-occupied commercial property. These are a small share of our business, but we do them.

Yes. We finance raw land only, raw land with development, and raw land with development and vertical construction. It works like a new construction loan with a horizontal development step added in between.

Yes. Hospitality and care facility loans generally require borrower experience. For hospitality, a flagged property is best, and boutique hotels are very difficult to get to closing.

Yes, but these loans come with added hurdles. Most houses of worship are owned by 501(c)(3) entities, and most lenders require a personal guarantee from one of the entity’s members, which is a challenge for many borrowers.

It depends on the loan type and the property type. To get started, we usually need the property address and type, the purchase price or estimated value, the loan amount and purpose (purchase or refinance), your business plan and exit strategy, borrower and entity details with experience, and, for income-producing properties, income documents such as a rent roll and operating statements. After we review your scenario, we provide a checklist for your specific deal.