If you’re looking to fund your next fix-and-flip project, you’ve probably heard about hard money loans. These loans are different from traditional bank loans, which focus heavily on your credit score and financial history. But what about credit scores? Is there a minimum required to qualify for a fix-and-flip loan?
Let’s break it down.
Do You Need a High Credit Score?
The short answer: Not necessarily.
Unlike traditional loans, hard money lenders like Nvestor Funding prioritize the property’s potential rather than focusing solely on your credit score. While your credit will be considered, it’s just one piece of the puzzle. We’re more interested in factors like:
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- The property’s after-repair value (ARV)
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- Your renovation plan
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- Your experience as an investor
So, even if your credit isn’t perfect, you may still qualify if the property is promising and your plan makes sense.
What’s the Minimum Credit Score?
While the exact minimum can vary, most private lenders prefer a credit score above 600. At Nvestor Funding, we take a more flexible approach, especially if the property has a good upside potential. If your credit score is lower, it’s still worth applying, especially if you have a strong renovation plan and experience in real estate.
What If I’ve Had a Bankruptcy or Foreclosure?
A past bankruptcy or foreclosure doesn’t automatically disqualify you from getting a fix-and-flip loan. We understand that life happens, and what matters most is how you’ve recovered. If you’re transparent about your situation and can show you’ve learned from past setbacks, you could still qualify.
What’s Required to Apply?
When you apply for a fix-and-flip loan with us, we’ll ask for:
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- A detailed renovation plan
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- A signed property contract
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- Recent bank statements (last 3 months)
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- Tax returns
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- An estimated after-repair value (ARV)
If you’ve flipped properties before, that’s a big plus! Your track record can make a difference, even if your credit score isn’t perfect.
Loan Terms at a Glance
Here’s a quick look at what we offer:
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- Property Types: SFR (1-4 units), Multifamily (up to 20 units)
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- Loan Amounts: $200,000 – $3,500,000
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- Loan-to-Cost: Up to 93.5%
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- Loan Terms: Up to 24 months
We tailor loans to suit your project, whether it’s a smaller flip or a larger renovation.
