Fix and FlipWe have two different program options, depending on the property and the borrower's qualifications. With option one, we lend 70, 75, or 80% of the purchase pice of the property plus 70, 75, or 80% of the repair budget (maximum 70% on this option on Arizona properties). With option two, we lend 90% of the purchase price plus 90% of the repairs of the property. Option one offers the lowerst rates and fees (see Fix-and-Flip Loan Terms Link for terms). Both options are also subject to the after repair appraised value of the property.

An example is shown below. The downpayment requirement is subject to underwriting and may be lower or higher than in the example shown below.

Example at 75% of Purchase Price Plus 75% of Fix-up For Qualified Properties and Borrowers (Each loan request is subject to underwriting and approval and factors considered include, but are not limited to, the strength of the property as well as the borrower’s credit, liquidity, net worth, income, and experience.)

CROSS-COLLATERALIZATION
If the borrower already owns other real estate, such as a primary residence, second home, or investment property, in an area that MMTC lends, there may be enough equity (at a proper loan-to-value percentage) in that property to use as the down payment for the new fix-and-flip property being purchased. So, the borrower may be able to put that equity to use and not have to put any cash in to the transaction. Many of our clients have successfully used cross-collateralization. Ask your loan specialist for details.
  Loan   Down Payment  
Purchase Price = $150,000 x 75% = $112,500 25% From Borrower = $37,500
+ Improvement Costs = $20,000 x 75% = $15,000 25% From Borrower = $3,750
Total = $127,500 $41,250*
* Down payment From Borrower May Come From A Variety of Sources (Subject to Underwriting and Qualification) Such As: Cross-Collateralization; Home Equity Lines; Partner Funds; Gifted Funds.
See our Benefits and Terms links.