If you’re thinking of getting into house flipping and you need financing, I’ll tell you about a great program you can use.
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What kind of mortgage loan programs are available to you if you’re thinking of getting into house flipping?
According to Stacy Crossingham of Finance of America, there are several options you can consider, but today we’ll focus on a program that’s great for both home builders and first-time investors.
This program offers a line of credit that takes your liquid asset total and multiplies it by five. If you have $50,000 in liquid assets, for instance, you’d be approved for $250,000 in your line of credit. This line of credit is then open for 12 months, and you can have anywhere from five to 10 properties on it.
It isn’t just for single-family homes, either—you can build multi-unit complexes that will count as one single property, which is what makes it particularly beneficial to home builders. Also, you can borrow against your limit anytime you want, which saves a lot of time going back and forth with the bank.
"You can borrow against your limit anytime you want, which saves a lot of time going back and forth with the bank."
This program’s qualifications are predicated more on experience than income, so the more properties you own as rentals, the better your interest rate will be. If you’re a first-time investor, you’d be seen as slightly higher-risk. Rates start at 6.99% for 12 months. After that, they renew your line and increase it as your experience increases.
If you’d like to know more about this and other loan programs designed for house flippers, you can give Stacy a call at (505) 577-4304.
If you have any other real estate questions for me, feel free to reach out to me as well. I’d love to help you.