How to get a fix and flip loan with a low credit score.
Do you need to quickly get a loan approved for a distressed property but also have a lower credit score? A private direct lender that specializes in fix-and-flip financing recognizes the potential After-Repair Value (ARV) of distressed property and can quickly approve and disburse the funds you need to purchase and rehab a property you have under contract. This access to fast financing is critical when the ability to quickly close a sale can set your offer apart from other buyers.
For example, if you are a fix-and-flip investor with a 620 credit score, a conventional bank loan is not a likely financing option for you next flip project. Before even considering the value and condition of your subject property, a conventional bank will regard your credit worthiness as the main priority in their lending decision.
Unlike a bank, a private fix-and-flip lender can approve you with credit challenges because the underlying property serves as security for the loan. Subject to approval, additional real estate the borrower owns can also be used to secure a private fix-and-flip loan.
Interested in faster loan closings, lower risk, and growing your fix-and-flip business? Get our free step by step Fix-and-Flip Borrowers Guide for driving ROI and growth.
Ready to finance your next fix and flip property? Anchor Loans has funded more than 13,900 short-term loans totaling over $4 billion— the majority of them to borrowers with less than perfect credit and on properties in need of repair. Apply now for a loan or get a quick estimate.