Discover More About Flip Financing with Our Anchor Loans FAQ

Answers to 20 of the most popular fix-and-flip financing questions.


As a fix-and-flip investor, you may have questions about hard money loans and how they can help you grow and scale your business.  Anchor Loans, the largest lender to the fix-and-flip market, has a team of advisers answering questions every day on exactly this topic.  For your convenience, we’ve compiled a list of the 20 most common questions we hear, along with a concise answer for each.


What is a Hard Money Loan?


A hard money loan is a type of short-term loan in which the value of an asset, rather than the investor’s credit, is utilized to secure funds from a private lender. Also known as a “private loan” or “private direct loan” a hard money loan is a short-term solution for an investor seeking financing for a project lasting the course of several months to a couple of years.



Why is it called a “Hard Money” Loan?


Decades ago, the myth was that hard money loans were for those in hard financial situations. But this couldn’t be further from the truth. The phrase “hard money loan” derives from the fact the loan is backed by a tangible “hard” asset rather than credit.


Why Choose Anchor Over a Bank?


Anchor can underwrite the loan in a matter of days, streamlining the application process and helping investors gain quick access to their capital for fix & flip financing.


What are the Qualifications?


To qualify for financing with Anchor Loans, for the best rates an investor should have a proven record of at least five successful fix & flip projects in the last 18 months.


What If I Don’t Have That Level of Experience?


If the acquisition cost vs. exit value warrant consideration, and the investor has sufficient cash reserves for repayment and contingencies, a less experienced investor could qualify (on a case-by-case basis).


Can I Get a Loan for Fix & Flip Financing with Bad or No Credit?


Traditional banks require an applicant to have high levels of credit for approval. However, hard money loans can be approved for investors with credit challenges. The loan is focused primarily on equity, so those who have been through bankruptcy or have low or no credit can be approved for a hard money loan. Anchor prefers a minimum credit score of 620, but an applicant with a lower score can qualify for flip financing on a case-by-case basis.


Does Anchor Lend to Individuals, or Just to LLCs?


In California, Anchor will lend to an individual providing they have conducted more than 5 successful flips in the preceding 12 months. In all other states where Anchor operates, the investor must be a multi-member business entity.


Can I Live in the Property During the Loan?


The investor is not allowed to use their primary residence as the source of their hard money loan and therefore cannot live in the property during the loan period.


In Which Locations Do You Offer Your Services?


Anchor Loans operates in 42 states across the country and D.C., and we are rapidly expanding into the remaining states. A map of the states in which Anchor currently lends is available at


How Long Does It Take to Apply?


One of the great benefits of Anchor’s online application process for flip financing is that it only takes 10 minutes to complete. Your application will be reviewed within 24-48 hours and you will then be prompted to submit your deal specifics and purchase contract. Upon approval, and after the loan documents are signed, the escrow is ready to close and we quickly fund and wrap up the deal.


What Kind of Documentation is Required for Fix & Flip Financing?


We look at the loan process differently than a conventional bank, and require specific documentation to ensure the loan is processed quickly and effectively. When applying for an Anchor loan, you will be asked for the following documents:

  • Sales contract
  • Two years of tax returns
  • Construction budget
  • A list of currently owned properties
  • Two months of bank statements


How Long Does It Take to Receive Funding?


The funding process may take as few as two days, with more complex deals requiring one-to-two weeks.


What Types of Properties Does Anchor Loans Cover?


Anchor Loans’ hard money loans can be used to support many building and renovation projects, from single-family to multi-family homes, luxury properties and commercial buildings. We’re here to help finance strong real estate projects.


Is an Appraisal Needed?


An appraisal is an important part of the Anchor Loans underwriting process. We complete appraisals on the vast majority of the properties we finance, particularly those with high loan-to-value ratios (LTV) or unique property characteristics.


What LTV Does Anchor Loans Offer?


The LTV will depend upon the value and location of the subject property as well as the investor’s track record. Our rehab loans generally do not exceed 70% ARV, although some deals warrant 75% on a case-by-case basis. This amount can include purchase price, property rehabilitation costs and closing costs.


How is the After-Repair Value Calculated?


The after-repair value of the property is calculated based on the expected fair market value of the property after it is renovated. The investor’s proposed schedule of work is also taken into consideration during this process.


Can You Fund the Purchase or Rehab of an Owner-Occupied Property?


Anchor Loans only lends to investors for qualified investment properties. We do not lend on owner-occupied properties.


What Interest Rates Do You Offer?


Typically, our interest rates are between 8% and 13% depending on the type of property and its location. The investor’s experience is also a leading consideration in determining rates.


What Happens If the Project Goes Over Budget?


In cases where the project goes over budget, Anchor Loans cannot provide the investor with further funds to complete the work. Each project is handled on a case-by-case basis to determine next steps.


Do You Offer a Loan Product for Rental Properties?


Yes, in response to investor demand, Anchor now offers a “buy-and-hold” loan product for rental properties. For more information about Anchor’s rental loan program contact us at info@anchorloans.comcreate new email or call 310-395-0010.


Have another question we didn’t cover? Contact our Anchor Loans team, and we’ll gladly answer it for you.


Steve Pollack | CEO


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