Fix and Flip Loans That Move as Fast as You Do

A fix and flip loan gives a real estate investor the funds to purchase and rehab a distressed property. At Lima One, a fix and flip loan funds a percentage of the cost of the property and up to 100% of the rehab budget. The loan is an interest-only loan, and investors only pay interest on rehab funds after drawing them from the loan based on completed work.

To get a loan for a house flip, you must find a property that you can add value to through rehab. This rehab could be cosmetic or heavy rehab where you add square footage to the property. As a business purpose lender, Lima One will only finance house flips for investment purposes, not for homes the owner plans to occupy.

An investor looking for a rehab loan needs to have a contract on a property to purchase or own the property already. The investor also needs to have a documented rehab plan and a construction budget in place. Lima One will also require the investor to cover a portion of the property's purchase price at closing.

Lima One requires investors to have a minimum credit score of 660 to get a fix and flip loan. We also require one exit of an investment property in the last 36 months. This exit can be a previous flip, or the sale or refinance of an investment property the investor was on title for. Flippers with more experience will get higher leverage and lower interest rates and origination fees.

Lima One can fund a fix and flip loan within 3 weeks for repeat borrowers. Investors can speed up the process by completing borrower underwriting and experience verification before finding a property, and by providing all requested documentation at the time of loan submission. Lima One also offers options for faster appraisals on certain loans, to enable even faster timelines.

After completing a fix and flip project, investors have several options to exit their Lima One fix and flip loan. All these options are available with no prepayment penalty. Investors who sell the property can pay off the fix and flip loan and claim the profit from the project. Investors who choose to hold a property as a rental can refinance the property into a Lima One rental loan with a DSCR structure. Investors who need more time to sell the property, or who aren’t sure of their exit strategy, can refinance into a Lima One bridge loan. Lima One offers discounts on origination fees for internal refinances and waives seasoning requirements on those refinances.

Yes, Lima One can finance both the purchase and refinance sides of a BRRR or fix-to-rent project. Our Fix2Rent® loan program is designed to help flippers buy, rehab, rent, and refinance properties. An investor who uses Lima One loans for both the flip, and the long-term takeout loan will get origination fee discounts on the DSCR loan.

Lima One’s loan process includes a rehab budget review by our in-house construction management team. This step is meant to ensure the budget is appropriate to avoid cost overruns and successfully complete the project on time. If a project takes longer than expected due to bad weather, materials shortages, or other factors, Lima One offers loan extension options. Investors facing potential delays should speak to their assigned in-house servicing analyst as soon as possible for the best possible solution for any issues that arise.

Lima One offers fix and flip loans on single-family properties, multifamily properties up to four units, and warrantable condominiums. These properties may require light rehab or heavy rehab during the fix and flip project. The minimum as-is value or purchase price of a property before the flip must be $100,000.

Yes, foreign nationals can qualify for fix and flip loans, even if they do not have an established credit score. A Lima One loan consultant can provide more information on the borrower underwriting process for foreign nationals.