What lenders look for.
Typical leverage, credit, experience and terms across the lenders we place with. Every program is a little different, so these are ranges, not offers. The pricing tool applies them to your actual deal.
Last reviewed October 2026Fix and flip
Purchase or refinance of a property being renovated, with rehab funds held back and released as work is done.
| Loan size | From $75,000. Larger loans are available at some programs, up to several million. |
|---|---|
| Leverage | Up to 90% of cost (purchase plus rehab) for experienced borrowers, usually 80% to 90%. Up to 70% to 75% of after-repair value. |
| Credit score | 660 or better at most programs. 700 and above earns the best leverage and rate. |
| Experience | Not required, but rewarded. More completed projects in the last 3 years means more leverage and a lower rate. First-time investors usually face a cap on loan size and rehab budget, and may need a vetted contractor. |
| Rate | Roughly 9% to 12%, fixed, interest only. |
| Points | About 1 to 2.5 points. |
| Term | 3 to 18 months, most often 12, with no prepayment penalty at most programs. |
| Draws | Rehab funds are released after work is done, against a draw request and photos or an inspection. |
Ground-up construction
New construction on land the borrower owns or is buying.
| Loan size | From $75,000. |
|---|---|
| Leverage | Up to 85% to 90% of total cost and up to 70% of after-completion value. |
| Credit score | 660 or better. 700 and above for the best terms. |
| Experience | Builder experience drives pricing. A first-time builder is generally approved only with a vetted general contractor who has built at least three homes in the last three years. |
| Rate | Roughly 9% to 11.25%, fixed, interest only. |
| Points | About 1 to 1.5 points. |
| Term | 12 to 18 months. |
| Draws | Funded against a construction budget and a schedule of draws. |
Bridge
Short-term loan on a stabilized or lightly updated property, without a funded rehab budget.
| Loan size | From $75,000. |
|---|---|
| Leverage | Up to 75% to 80% of value on a purchase, about 70% on a rate and term refinance and 65% on a cash-out. |
| Credit score | 660 or better. 700 and above for the best rate. |
| Rate | Roughly 9.5% to 11%, fixed, interest only. |
| Points | About 1 to 2 points. |
| Term | 6 to 18 months. |
Rental (DSCR)
Long-term loans on rental property, qualified on the rent the property earns instead of the borrower's income.
| Loan size | From $75,000 to about $3,000,000, depending on the program. |
|---|---|
| Leverage | Up to 80% on a purchase, and up to 85% for experienced borrowers with a 740 score on loans under $1 million. About 75% on a cash-out refinance. |
| Credit score | 660 or better. 700 for short-term rentals. |
| Debt service coverage | A DSCR of 1.0 or better. A higher ratio earns a better rate. |
| Rate | Roughly 6.25% to 8.5%, depending on score, leverage, DSCR and prepayment term. |
| Term | 30-year fixed, with interest-only options at some programs. |
| Prepayment | A prepayment penalty usually applies, typically 3 to 5 years. |
| Property | Single-family, townhomes, condos and up to 10 units. Investment properties only. |
Eligibility basics
| Business purpose only | Every loan must be for a business or investment purpose. No owner-occupied homes and no consumer-purpose loans. |
|---|---|
| Who can borrow | Most programs want an LLC or corporation with the borrower as guarantor. Some allow an individual. Foreign nationals are handled case by case. |
| Property types | One to four unit residential is the sweet spot. Larger multifamily, mixed-use and commercial are considered by some programs at lower leverage and higher cost. Rural or isolated properties are often excluded. |
| Where | Availability depends on the state. Some programs exclude certain states. The pricing tool only prices states we are placing loans in today. |
| Liquidity | The borrower needs their own money for the down payment, closing costs and reserves. Gift funds are limited. |
| Underwriting | The funding lender runs its own credit and background review on every guarantor during underwriting; nothing is collected up front. Financial crimes and felony convictions are generally disqualifying. |
What your borrower provides
- Government ID, front and back
- Last two months of bank statements, all pages
- Entity documents, EIN letter and operating agreement showing who owns what
- Purchase contract
- Schedule of real estate owned or sold in the last 3 years
- Budget and contractor bids for any rehab or construction
- Insurance and property taxes, and the lease or rent roll on rentals
- Signed application and credit and background authorizations, done online
Costs to expect
- Lender points and fees, shown in your indicative terms
- Underwriting and processing fees, commonly about $2,000 to $3,000 together
- Appraisal and credit report, paid by the borrower to the vendors
- Title, insurance and legal costs at closing
- Your own broker fee, which you set
Guidelines are a summary, change without notice and are not a commitment to lend. Final terms depend on underwriting.