Real estate investors use Arizona Fix and Flip Loans for short term financing to purchase and renovate a property with the intent of selling it for a profit. These loans are for properties with fast closing and the property is in any condition.
Hard Money Loans in Arizona are the most popular type of Arizona fix and flip loans. In some cases, you can qualify in minutes, see your rates, and get funded within in as little as one week. Hard Money Loans in Arizona are popular loans used for these types of properties. They offer short terms and are secured by real estate. This type of loan is used by investors to purchase a property, renovate the property, and then sell the property within a year. Loans geared for fix and flip properties enable you to finance a property in poor condition. With Hard Money Loans in Arizona, the threshold for approval is lower than conventional loans and funding could be in as little as one week. The concern of the lender is more about the collateral than the background of the borrower. Here are five options for Arizona Fix and Flip Loans including the hard money lender.
Hard Money Arizona Fix and Flip Loans – Perfect for novice investors as well as experienced investors with 2+ flips.
· UP TO 90% Loan-to-Value and 80% after-repair-value
· Term 1-3 years
· Approval time 24 Hours, up to 15 days for funding
· Interest Rates: 7%-12%
· Fees: 1-5% -10% lending Fee, 2% – 5% closing costs
· Qualifications: 550 minimum score, 2-3 past Rehab Projects and Possible Licensed Contractor
· Financing up to 75% loan to value
· Term 15-30 years
· Approval 30-45 days
· Interest Rates 3.99% to 6%
· Fees 0% -3% lending fee, 2% – 5% closing costs
· Qualifications 640 minimum credit score, 45% debt to income ratio, 0-6 months reserves and Existing property with 40% equity
Home Equity Line of Credit – Investors who have an owner-occupied primary residence with equity of 30% -40%.
· Financing of up to 85%
· Loan term 25-30 years
· Approval/funding time is 30-45 days
· Interest Rates 4.5% to 5.5% variable rate
· Fees 0% to 2%
· Qualifications 640 minimum credit score, 45% debt to income ratio and existing home with 30% equity
· Financing up to 80% of cost
· Loan term up 75% loan to value
· Approval time up to 30days
· Interest Rate 5.2% – 6%
· Fees $75 annual service fee and 1% -5% closing costs
Arizona Bridge Loans – If you need to close quickly and will arrange more permanent financing later.
· Financing up to 70%
· Term 2 weeks to 1 year
· Approval 15+ Days
· Interest Rates 6.2% – 9%
· Fees $500 appraisal, 1%-2% lender fees
· Qualifications- Ability to pay 2 mortgages, 20% equity in current property and an exit strategy
Clearly, there are many options when choosing a Arizona Fix and Flip Loan for your property. We work with hundreds of investors at Setabay, many of which specialize in these types of loans. We are quick to funding and can close in as little as three days.
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.