Fix-and-flip loans typically have terms of less than two years, with fast closings in a matter of a couple of weeks. There are several types of loans used for fix-and-flip purposes. Listed below are the five most common and the best provider for each type of loan:
- Kiavi: Best hard money lender
- Visio Lending: Best cash-out refinance
- LendingTree: Best home equity loan or line of credit
- CoreVest: Best investment property line of credit
- AVANA Capital: Best bridge loan
Provider | Loan Type | Max Loan Amount | Loan Term | Interest Rates | Funding Speed |
|---|---|---|---|---|---|
Hard money | $3 million | 12 months | Starting at 4.95% | 5 to 15 days | |
Cash-out refinance | $3 million | 5 to 30 years | Starting at 5.2% | As soon as 21 days | |
HEL or HELOC | Up to $100,000 | Up to 12 years | Starting at 2.49% | Varies per lender | |
Investment property LOC | $50 million | 18 to 24 months | Starting at 5% | As soon as 15 days | |
Bridge loan | $25 million | 12 to 36 months | 8.75% to 9.5% | 45 to 60 days |
Kiavi: Best Hard Money Lender
Kiavi is our best overall choice for hard money loans. Kiavi promises funding within 15 days, no hidden fees, and no personal income qualifier. Maximum loans of up to $3 million are available for up to 12 months. First-time flippers are eligible, but more experienced flippers―at least five flips in 24 months―will get better rates and a dedicated manager. Go to Kiavi’s website for more information or to apply.
Visio Lending: Best Cash-out Refinance
For borrowers looking to use cash out from a property refinance to purchase a fix-and-flip property, Visio Lending has an excellent cash-out refinance program. Visio Lending offers loans of up to $3 million with a maximum loan-to-value ratio of 75%. No personal debt to income is calculated, meaning that the borrower qualifies based on the business income and debts calculated through a debt service coverage ratio (DSCR).
While you can’t apply directly through Visio Lending’s website, you can submit your contact and deal information, and a representative will contact you. Stop by Visio Lending’s website for more details.
LendingTree: Best Home Equity Loan or Line of Credit
While LendingTree isn’t a lender itself, it does provide an excellent marketplace to find the best home equity loan (HEL) or home equity line of credit (HELOC) available. LendingTree will shop your application around so that you can find the best rates and terms available. Interest rates start as low as 2.49% for fixed-rate home equity loans; however, expect to pay at or above the prime rate for any revolving line of credit.
Remember that a home equity loan or line of credit will use the home owner’s personal income and credit information for qualification purposes. There must be equity available as lenders will only allow you to borrow between 90% and 95% of the equity in the home. The equity calculation is a combined LTV ratio between an existing mortgage and the new loan or line of credit.
Also, it’s important to note that any mortgage with an LTV of over 80% will likely require mortgage insurance, which will increase the monthly payment due.
Visit LendingTree’s website for more information or to apply for a HEL or a HELOC.
CoreVest: Best Investment Property Line of Credit
CoreVest offers an excellent fix-and-flip investment property line of credit. The credit line allows builders to complete projects, sell them, and continue with a revolving line of credit for the next flip. Credit line amounts range from $1 million to $50 million. CoreVest considers the borrower’s credit history and personal financial statements, along with the business’s liquidity.
CoreVest offers an online application, a chatbot, and a toll-free number to get the application process started. Go to CoreVest’s website to begin the application process.
AVANA Capital: Best Bridge Loan
AVANA Capital is our choice for the best commercial bridge loan provider for flippers, with loans of up to $25 million. Loan terms range from 12 to 36 months. While turnaround time can be as long as 45 to 60 days, it can be as quick as 10 to 30 days. AVANA Capital’s bridge loan product is available to many different industries, including hospitality, owner-occupied real estate, and renewable energy, among others.
You can get the application process started on AVANA Capital’s website by entering your contact information on a form and submitting it. A representative will contact you to get the process started. Visit AVANA Capital’s website to get the process started today.
What We Considered When Choosing the Best Fix-and-Flip Loans
Choosing the best fix-and-flip loans involved choosing the best provider for each of the five most common loan types. We considered the maximum loan size, the speed of funding, the qualifications required, and any fees involved. We also compared the commercial real estate loan rates for each provider. Before applying for a fix-and-flip loan, review the steps required to get a small business loan.
Bottom Line
Whether this is your first fix-and-flip or you’re a veteran of many flips, the providers listed here can help you secure either personal or investment property financing to ensure the success of your project. Consider the amount you need to borrow, the timeline of the project, and the long-term goals of your flipping business before deciding on a fix-and-flip loan.
