Lenders not liking fix and flips??

Financing, Hard Money Lenders, Private Money
1

I’m looking to invest in fix and flips and contacted a lending company and the guy that contacted me back told me “And also, don’t say that you want to do fix and flips, lenders have a problem working with that.”

Is this true?

Another friend of mine who works with lenders had told me this:
“I would recommend an ARM for your property as I know that you will not plan to “hold on to” it for a long period of time. There are sometimes restrictions on how quickly you can “resell” the property.”

I wasn’t aware of lenders not wanting to work with real estate investors who would want to re-sell the home after fixing it up. :-\

2

this is true for an FHA loan, but for a conventional loan, not true. The only thing that might happen if you sell within 3 months is that the lender that the broker sent the loan to might want to take back the yield spread premium. yield spread premium is the back end money that the broker makes based on the interest rate they lock you in at.

There may also be some specific lenders who have a 3 month requirement.