If you’ve ever shopped for a loan or mortgage, you know how much of a difference your credit score can make. Higher scores can help qualify you for better terms, lower interest rates and special funding only offered to low-risk borrowers. However, nobody’s credit is perfect, and bad credit can take a long time to improve. If you’re interested in flipping houses but have bad credit, there are plenty of funding options available to help get you started.
Here are the best ways to get funding to flip regardless of your credit score:
If you have bad credit, a private lender might be a good option for funding a flip. The major reason to consider a private loan is that they come from sources who don’t follow the same rules and criteria as traditional financial institutions. Therefore, they might not weigh a credit score as heavily—some may not require a check at all. Because every private lender is different, it’s crucial to research the options carefully, so make sure you can still work within their custom requirements.
You can borrow against the equity of your current home to fund a new purchase. This includes cash-out refinancing, home equity lines of credit and home equity loans. The first option means you would refinance your current mortgage and keep the difference between the loans as cash. Home equity lines of credit work like credit cards to offer you money up front that’s borrowed against home equity. Home equity loans are like traditional mortgages, but use your property as collateral.
Crowdfunding is an excellent way to gather financing for a project from multiple sources, none of which require a high credit score. By using one of the major online crowdfunding platforms, you can set up a fund for your fix-and-flip purchase through contributions from people all over the world. Crowdfunding is the most flexible option but also requires some marketing savvy to be successful. If you’re willing to put in the work, this is an excellent option for financing your project regardless of credit.
While your credit score matters in many financial situations, there are ways to achieve your goals without a high score. No matter what kind of credit you have, these three options are great to consider for funding your flip.
With over 30 years of residential experience in the Capital District, I have an in depth knowledge of houses for sale throughout the region. Working with buyers, I listen to your needs and help you find the right home. Selling a home requires a professional understanding of the process, including pricing, staging and personalized marketing techniques to get your home sold. I will work with you through all the details of buying or selling right through till the closing.
I have been a Multi-Million Dollar Producer throughout my career. I am active in the Greater Capital Association of Realtors serving on the Professional Standards and the Community Outreach Committees.
My business has been based on repeat and referral clients, which is the highest compliment I can receive. I have sold some homes 3 times and have worked with 3 generations of a family.
I believe in paying it forward. For years I have been actively involved with community service organizations.
Real estate has been my job but I really enjoy helping others create a better quality of life for themselves
