A Fix and Flip Loan,also known as a hard money or bridge loan,is a specific type of asset-based loan At Star Richs Funding Group, we work with lenders that specialize in loans for fix and flip property oportunities.Call or email us today! We can get you the best rate quote from one of these preferred lenders! Fix and Flip loans are typically issued at much higher interest rates then conventional or residentail property loans and are almost never issued by commercial banks. Hard money is similiar to bridge loans wich usually has similar criteria for leanding as well as cost to the borrowers. The primary difference is that a bridge loan offten refers to a commercial property or investment property that may be in transition and does not yet qualify for tradition financing where as a hard money often refers to not only an asset-based loan with high interest rate,but possibly a distressed financial situation such as arrears on the existing mortgage,or where bankruptcy and foreclosure proceedings are occurring. Many Fix and flip mortgages are made by private investors,generally in their local areas.Usually.credit score of the borrower is not as important,as the loan is secured by the value of the collateral property.Typically,the maximum loan to value ratio 65-70%.That’s is if the property is worth $200,000K the lender would advance $130,00 to $140,000K against it. This low LTV provides added security for the lender,in case the borrwer does not pay and they have to foreclose on the property
