Whether you’re stepping into the exciting world of house flipping or are a seasoned real estate investor, eFunder Capital is your trusted partner for hard money rehab loans in Pittsburgh and beyond.
We specialize in providing tailored financing solutions to help you secure the funding you need for your next property-flipping project. With our deep expertise and extensive resources, we’re equipped to meet the diverse needs of investors at any experience level.
From first-time flippers to experienced professionals, we’re committed to making your real estate investment journey smooth and successful. Partner with eFunder Capital today and take your house-flipping ventures to the next level.
How Credit Score and Experience Impact Your Potential To Get Fix-and-Flip Loans
In real estate, leverage is shaped by your credit score and experience. For new investors with limited experience (fewer than three flips in three years) and less-than-stellar credit, hard money lenders often reduce leverage, requiring higher down payments.
Example: A new investor may qualify for 70% Loan-to-Value (LTV) on a $250,000 property, resulting in a $75,000 down payment, with up to 75% of After Repair Value (ARV) covered for renovations.
Better Credit: New investors with strong credit can qualify for 80% LTV, reducing the down payment to $50,000.
Experienced investors (three flips in three years) with excellent credit often receive the best terms, including up to 90% LTV (a $25,000 down payment) or, in some states, 100% LTV of the purchase price. Renovation costs are typically covered up to 75% of the ARV.
Understanding these factors helps you make informed decisions and maximize success in the competitive world of property flipping.
Private Lenders vs. Institutional Lenders in Real Estate: How Credit Scores Play a Role
Real estate experts often claim that a great deal can make your credit score less critical, particularly when working with private lenders. Private lenders are typically individuals, such as family or friends, who fund deals based on your proven track record rather than focusing on credit. These lenders might draw from retirement accounts, cash value life insurance, or personal savings, creating a relationship-driven lending process that relies on trust and your history of success.
On the other hand, institutional lenders—including banks and hard money lenders—place significant weight on your credit score. This factor often determines their willingness to finance your project, no matter how profitable the deal appears. Credit requirements can shift with market conditions, and a lower score may result in reduced leverage and higher upfront costs. If your credit score needs improvement, it’s smart to start addressing it early using resources like eFunderCredit.com, which can help strengthen your financial standing.
Transparent Pricing: Our Broker Fee and Payment Policy Explained
Our broker fee is two points (2% of the loan amount) on anything over $100,000 and four points (4% of the loan amount) on anything less than $100,000, minimum commission is $2,500, whichever is greater and a $695 administration fee.
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