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Selecting the right type of real estate or home loan is important when securing funds for a home. While a 30 year fixed mortgage is ideal for someone who plans on stay put in their home for a long period of time, not everyone has the same goals. If you’re looking to fix up a home and then flip it quickly for profit, fix and flip loans may be right for you. Here’s some factors that set these types of loans apart from others.

They’re Meant to Be Paid Quickly

Fix and flip loans have some of the fastest repayment periods on the market when it comes to paying off the loan. These loans aren’t meant to be outstanding for long periods of time. They are simply meant to provide you with enough time to renovate, restore or remodel a home and sell it to someone else. As such, most of these loans have terms that require the loan to be repaid in about two years.

The Loans Close Quickly

When you go to buy a home, it can take weeks or even a month or two to close on the loan. But, people who are looking to sell fixer upper homes typically don’t want to wait that long. If you don’t have the funds ready to go, they’ll often move on to a developer who has cash in hand. Fix and flip loans are designed to remedy this by closing faster.

The Funds Can Be Used to Renovate or Repair a Property

The most unique aspect associated with fix and flip loans is that the loan doesn’t simply cover the purchase price of the home and land. The funds that you receive can be used to renovate or repair a property. This is one of the only types of home loans that allows you to use the money to fix up a property you’re buying.

Fix and flip loans are not the first thing that people think of when they think about home loans. But, these are important types of loans that are perfect for those who plan on buying a home simply tio fix and flip. According to Fit Small Business, fix-and-flip loans typically have repayment terms of less than two years and fast closing periods within a matter of weeks. If you’re interested in learning more about this type of loan, including whether you may qualify for one, reach out to us today.