I’m excited to review in this post a true 2 to 4 unit fix and flip purchase and renovation mortgage for Investors. By Investors, we mean those who will never occupy themselves as owner occupiers and will sell or lease to all tenants after completion.
This renovation mortgage is an alternative to high cost Hard money loans. The mortgage is designed for investors at any level of experience, unlike Hard money loans that may require a past history of successful fix and flips meeting specific criteria.
Below are highlights of the program-
- Provide funds for Investors who purchase, repair and sell, or who purchase repair, and hold the properties after completion
- Credit scores as low as 660
- Non-owner occupied 2 to 4 unit buildings, single family and condo
- Funds to complete a stalled project when funds have run out
- Max loan size up to 85% Loan to Cost with 3 projects completed
- Max loan size up to 75% Loan to Cost for new Investors on their first project
- Construction loan amount up to 100% of cost
- Total loan amount up to 70% of after renovated value (ARV)
- Appraisal done based on project scope and budget to arrive at ARV
- 12 month loan term with Interest Only payments
- Can sell or refinance after 12 months
- No pre-payment penalties
- Debt to income ratio is not calculated
- Loan amount of $150,000 to $1.0M
- Construction funds dispersed in stages
- Close in an LLC or S Corporation
This program can be perfect for those Investors seeking funds to restore derelict or outdated 2 to 4 unit properties to modernize them and make them safe to occupy once again. In Chicago, where I live, we have many classic late 19th century and early 20th century 2 to 4 units in need of updating and restoration. I’m sure there are similar properties in many cities and suburbs where this type of Investor renovation mortgage can be helpful. Once completed the properties can be sold and the Investor can start the next one or refinance to a Conventional mortgage and lease to tenants.
In addition to this program, we have 2 to 4 unit renovation mortgage options for those who can owner occupy for the first 12 months before turning the property over to all tenant occupants. These can be FHA or Conventional renovation mortgages.
What questions do you have for me ?
Loan approval and terms are dependent upon borrower’s credit, documented ability to repay, acceptability of collateral property, and underwriting criteria. For licensing information, go to: www.nmlsconsumeraccess.org. 4305 N. Lincoln Ave., Office D Chicago, IL 60618. Down payment and terms shown are for informational purposes only and are not intended as an advertisement or commitment to lend. Please contact us for an exact quote and for more information on fees and terms. All loans subject to credit approval. Rates and fees subject to change. Not all borrowers will qualify. This loan product is offered by First Community Mortgage and administered through a broker relationship.
Perry Farella NMLS ID755943
FCM NMLS ID 629700
Perry Farella 773 793 8803
Perry.Farella@fcmhomeloans.com PerryFarella.com