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FIX-AND-FLIP
LOAN PROGRAM
 This
is one of the most popular loan products offered by Merchants
Mortgage. Kim Hubbard, Executive Vice President, has specialized
in this product since 1993. This product is specifically designed
to accommodate investors who want to purchase and remodel fix-up
properties in order to sell them for a gain or to refinance them
under conventional terms once the property has been remodeled. The program not
only works for 1 to 4 residential
units, but also for commercial properties which have 5 or more
units. The program is offered in metropolitan Denver, Colorado
and surrounding cities, also in metropolitan Phoenix, Arizona
and surrounding cities. The loan term is for 180 to 360 days,
depending on property type. There are NO prepayment penalties
and interest only payments are due monthly.
PROGRAM
HIGHLIGHTS:
- Merchants
Mortgage lends up to 90% of the purchase price and additionally
lends 90% of the improvements that the borrower estimates they
will make to the property. The borrowers are allowed
to do work to the property themselves as it is not required
that contractors complete the work.
- We can use equity in other properties (known
as cross-collateralization) for the downpayment on the
fix-and-flip property so that the borrower does not have
to put cash into the transaction, provided that our loan-to-value
and other guidelines are met.
- We allow the properties to be titled in the
name of corporations, partnerships or limited liability
companies. This is very popular with fix-and-flip investors.
- Borrowers who are self-employed find the loan
quick and easy to qualify for because we have flexible
income underwriting.
- We do not have a specific limit on the number
of investment properties that the borrower has financing
on.
- We close these loans very quickly. We typically
provide approvals within 24 hours and many closings occur
within 1 (one) week of approval. Our quick closings often
help the buyer get a contract over other prospective buyers.
- We do not have any prepayment penalties. Naturally,
this is of great importance to fix-and-flip investors.
- We allow partial releases of multiple unit properties.
FOR
MORE DETAILS PLEASE CONTACT:
Kim Hubbard, EXECUTIVE VICE PRESIDENT
303-770-6801
Cell: 303-898-1366
khubbard@merchantsmtg.com
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