Home Flipping Mortgage
So, you’ve been watching all the home renovation shows for years now and you’re confident you too can do it! Now you have found a perfect property to flip and you want to put in an offer to purchase… problem is, all traditional financial institutions have guidelines that restrict the ability to flip properties.
But not to worry, your dreams of home flipping success are not over … there is an excellent lender who will help Real Estate Investors who are buying to fix up and resell properties for a profit or BRRR clients who “buy, renovate, rent, and refinance” properties.
Here are the details you need to know to make your home flipping goals a reality:
Small Down Payment
The less money you put down means, the more house flipping opportunities you can seize. In Alberta, you can start with as little as $10K down with purchase prices up to $400K.
Fully Open Mortgage
Traditional financial institutions have payout penalties. With this lender, your mortgage is fully open, and there are no prepayment, payout, or renewal fees.
In House Services
In-house services saves you time and money. The lender offers free same-day valuations at no cost to you through their very own in-house real estate analysts. In Alberta, they can help you close a purchase with the benefit of just one lawyer to act on behalf of yourself and the lender, which reduces legal fees and adds to the efficiency of the lending process.
Simple Approval
They can pre-approve clients before having a flip on the go. There is no minimum credit score, and they don’t look at debt service ratios.
They will look at profitability first!
Will you make money on this flip? Using your budget and renovation descriptions, they value the property on its After Repaired Value, AKA ‘as if renovated.’ Whether you are flipping a house, investing in a rental property, or executing on a BRRR strategy, they set you up for success by lending up to 80% LTV of the After Repaired Value.
As a house flipper, you cover the cost of renovations and carrying costs. In return, you make monthly interest-only loan payments.
The Fine Print
Term: 6 months fully open with no prepayment penalty and no renewal fee. Rates start at 9.99%. Early Prepayment: This mortgage is fully open. There is no payout penalty.
Payments: Monthly interest-only loan payments. Commitment Fee: This fee is a percentage of the net loan amount and is built into the mortgage.
Contact your favourite Mortgage Broker to learn more!
Candace Perko, Mortgage Broker
