Fix & Flip Loans

As an industry leader in Fix & Flip financing, MMTC offers quick closings (3-5 days in many cases), practical underwriting for investors, and lends on a variety of property types and conditions.  Since our founding in 1962, MMTC has closed over $2Bn of investor loans.  Accompanied with our loan product, MMTC gaurantees predictability, strong customer service, and integrity in this fast-paced industry. 

Many investors also use MMTC loans for Fix & Hold projects as they desire to build or continue building a rental portfolio. Ask your Loan Officer about these options! 

General Terms

Please note that the structure and pricing of each loan are subject to underwriting and approval.

Fix & Flip Loan

Percentage Lent

Up to 90% of Purchase Price plus 90% of Repairs (90% Loan-To-Cost).  The loan advance ratio is also subject to the loan amount also being no more than 75% of the After-Repair appraised value of the property.

Rate

8% to 10% Fixed
Depending on Down Payment, Property and Borrower Qualifications.

Origination Fee

1.50% to 2.25%
Depending on Down Payment, Property and Borrower Qualifications.

Loan Term

6 months with an automatic 6 month extension.

Prepayment Penalty

No prepayment penalty.

Credit Qualification

Subject to some exceptions, the credit score requirement is 680 or higher.  Merchants’ underwriting is generally more investor friendly than traditional, conventional loan underwriting.

Estimated Closing Costs

We do NOT charge for underwriting, document preparation, or application!

Appraisal:$500 for a Single Unit
Processing:$385
Title Company Closing Fees:$250
Recording Fees:$150
Title Policy and Endorsements:$575
First Year Hazard Insurance Premium and Prepaid Interest:TBD

Rates and fees are subject to underwriting and approval and are subject to change without notice. Closing costs are estimated.

See our fix-and-flip example and application links for more information or to take the next steps.

How do fix & flip loans work?

Merchants Mortgage Fix & Flip loans are designed to facilitate the acquisition and improvement of a residential investment property.  As a potential borrower, below is a rough idea of what to expect, as well as a few details to consider.  We also suggest talking with a Loan Officer to give you insight into your specific situation.  Here are a few noteworthy details:

  • We have the ability to underwrite and close this type of loan within 3-7 days.
  • Merchants will lend up to 90% of the purchase price of the property + 90% of the repair budget (90% of Cost, also known as 90% Loan To Cost (“LTC”)), subject to borrower and property qualifications.
  • All loans are subject to a maximum 75% Loan to Value (75% of Value, 75% LTV) based on the estimated “After Repair Value” of the property. 
  • Apply using our online loan application and provide the requested documents.

Depending on the specific loan request, the borrower, and the property qualifications, loans may be offered at reduced LTC/LTV ratios. Each loan request is subject to individual underwriting and approval terms are subject to change at any time.

Benefits of a Merchants Fix & Flip Loan

MMTC Staff Loan Experience

MMTC has a seasoned staff of professional loan officers and processors to assist you. We have an accessible and experienced draw department to assist with the improvement escrow draws and complete your draw requests in a timely manner. Many of our executives and employees have been with the company for over 10 years.

Property Types

We finance a variety of 1 to 4 unit property types and conditions, including but not limited to: bank owned properties, wholesaled properties, HUD foreclosures, short sales, auctioned properties, and more.

Fast Approvals and Closings

We provide quick pre-approvals (typically within 24 to 48 hours) and quick closings (typically within one week, sometimes less). Many of our investors have secured and closed on contracts due to our speed which has allowed them to compete against other investor’s that submit “all cash” contracts.

Improvement Funds

We lend not only towards the purchase price of the property, but we also lend a percentage towards the repairs. This means you don’t have to pull out of pocket funds to make all of the repairs.

Competitive Pricing

Our rates and fees are cheaper than many fix-and-flip lenders and can provide much better rates than traditional hard money loans.

Down Payment Flexibility

We do not require that funds for down payment be seasoned and may allow gifted funds.

100% Financing Using Cross Collateral or Down Payment Reserve

If there is sufficient equity in another residential property that you already own, it may be possible to cross-collateralize to cover the down payment. 100% financing also possible through a Down Payment Reserve Account where the down payment is held by MMTC as separate collateral and the loan is made for 100% of costs (ask your loan specialist for details).

Borrower Flexibility

Properties may be titled in entities, such as limited liability companies (LLC’s), corporations, or partnerships. No limit on the number of investment properties already owned by the investor. Self-directed IRA loans are available with additional downpayment.

No Prepayment Penalties

There are no prepayment penalties on our fix-and-flip loans.

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