Fix & Flip Lenders Online: Which of These 2 Will Fund You?

2 of the best fix and flip lenders online are Kiavi and New Silver. Kiavi vs. New Silver lender comparison.

If you’re looking for an online fix & flip lender to fund your project, you’ve come to the right place. The goal of this page is to present you two of the best fix and flip lenders online (Kiavi and New Silver).  NOTE: The information listed below was current at the time of writing, and may be subject to change.

Here, you’ll discover:

1. An overview of Kiavi’s fix and flip lending program
2. An overview of New Silver’s fix & flip lending program
3. Kiavi Vs New Silver: contrasting Kiavi and New Silver
4. Concluding Takeaways

By the end of this page, you should be in a better position to decide which of these 2 lenders is best suited for your situation and ambitions.

But, before we get started…

Below, you’ll come across industry terms and acronyms, such as loan-to-cost (LTC), after-repair value (ARV), and Fair Isaac Corporation (FICO).

Overview of Kiavi and Its Fix and Flip Lending Program

So far, Kiavi has “funded more than $16B in loans, unlocked $4.1+ billion of value,” and completed over 65,000 projects. At this time, they have a Trustpilot score of 4.7 out of 5 (basically, a 94% score).

Here’s what a Kiavi fix and flip loan can offer:

• Up to 90% loan-to-cost (LTC)
• Up to 80% after-repair value (ARV)
• Close in as little as 7 business days
• Competitive rates: as low as 9.25%
• Loans from $100k to $3 million
• Up to 95% of purchase price
• 12-month, 18-month, and 24-month terms
• 100% of rehab costs
• No application fee
• No appraisal
• No income verification
• Kiavi funds new purchases
• Required Fair Isaac Corporation (FICO) credit score of 640 for pro investors, and 660 for DSCR loans
• Kiavi also offers bridge loans

Overview of New Silver’s Fix & Flip Lending Program

New Silver is a fintech company. Its mission is to help “improve local communities by providing fast, convenient, and flexible capital to real estate investors.”

Their innovative pricing engine allows them to provide instant online loan approvals. In as little as 5 minutes, they can offer you a term sheet so that you’re ready to make an offer today.

At this time, they have a Trustpilot score of 4.7 out of 5 (basically, a 94% score).

• Up to 90% loan-to-cost (LTC)
• Up to 75% loan-to-ARV (After-Repair Value)
• Origination fee (which is basically a new application fee) from 1.875%
• Appraisal with interior access is required. (Full commercial appraisal required for projects with 5+ units.)
• Minimum $100k, up to $5 million
• Up to 100% construction
• Instant proof-of-funds letter
• Instant term sheet
• Interest-only payments
• No hard credit pull
• Discounts for repeat borrowers
• No junk fees
• Up to 24 months
• Minimum Fair Isaac Corporation (FICO) credit score of 650
• Interest rate of 10% to 12.75%
• 4.7 star rating on Trustpilot.
• When you apply online, New Silver can make an offer in as little as 5 minutes.

Note: New Silver doesn’t finance rural properties

Kiavi Vs New Silver: Similarities and Differences

Of course, since Kiavi and New Silver are fix-and-flip lenders, there are inherently some similarities between the two. There are also differences, and a careful consideration of these two (as well as contacting them to negotiate the terms that are best for you) will be the best path forward.

Similarities Between Kiavi and New Silver

• Both offer up to 90% loan-to-cost (LTC)
• Both offer loans from $100,000 (and into the low millions).
• At the time of this writing, each has a 4.7-star rating on Trustpilot
• Both have similar minimum FICO credit scores (640 to 650 range)
• Both offer loans terms of up to 24 months

Differences Between Kiavi and New Silver

While Kiavi offers up to 80% after retail value (ARV), New Silver offers up to 75% Loan-to-ARV. The terms ARV and Loan-to-ARV are similar, but also different enough that each should be considered separately. We have a page dedicated to this, titled What Is The Difference Between After-Retail Value (ARV) and Loan-to-ARV?

Whereas Kiavi states that they can close in as little as 7 business days, New Silver says that they offer instant online loan approval. They also provide a term sheet, so that within minutes, you can make an offer.

Kiavi offers loans up to $3 million. New Silver offers up to $5 million.

Kiavi offers up to 100% of rehabilitation costs, whereas New Silver offers up to 100% of construction costs. (Basically, Kiavi’s loan can cover all the rehabilitation, renovation, and repair costs. New Silver’s loan can cover all the costs of building a new structure.)

Also, Kiavi’s loan can cover up to 95% of the purchase price of a property. New Silver may or may not offer something comparable. You may have to consult with them to find out.

Kiavi doesn’t charge an application fee, but New Silver has an origination fee (application fee) of 1.875%.

With Kiavi, appraisals aren’t necessary, but with New Silver, an appraisal may be necessary.

Kiavi doesn’t do income verification.

New Silver doesn’t finance rural properties.

It seems that, of the two, New Silver has a very fast approval process, and can instantly generate a proof-of-funds letter and a term sheet.

New Silver promises to not charge junk fees. (Junk fees can be thought of as predatory lending, where a lender unfairly stacks questionable fees and charges on top of a loan.)

New Silver promises not to do any hard credit pulls. (This is good, because a hard credit pull can have a temporary negative impact on your credit score. A hard credit pull is not necessarily the same as a soft credit pull. If you’d like to know more, please see our article on hard vs. soft credit pulls.)

New Silver offers discounts for repeat borrowers. This may be good to consider if you plan on successively completing numerous fix and flip projects.

Of the two lenders, Kiavi may offer the lowest interest rates (as low as 9.25%).  New Silver’s lowest interest rate is 10%.

What These Differences May Mean

While both Kiavi and New Silver offer fix and flip loans from $100,000, Kiavi’s limit is $3 million. If your project is anywhere from $3 million to $5 million, New Silver may be your option, as its loans are capped at $5,000,000.

If you need a loan as soon as possible, New Silver may be a faster option, as they offer instant approval, allowing you the ability to make offers as soon as possible. You can also immediately get a proof-of-funds letter and term sheet.

That said, if you can wait 7 business days, Kiavi is also good.

If part of your project involves purchasing something, Kiavi offers up to 95% of the purchase price.

If your project involves extensive rehabilitation costs, Kiavi’s loan can cover up to 100% of rehab.

If your project involves construction, New Silver’s loan can cover up to 100% of construction.

Whereas Kiavi charges no application fee and doesn’t ask for an appraisal, New Silver does charge a 1.875% origination (application) fee, and will likely ask for an appraisal.

If your project is on a rural property, then New Silver may not be the best option, as they don’t fund projects on rural properties.

Both Kiavi and New Silver each have a Trustpilot score of 4.7 out of 5, which is basically 94%.

Kiavi Vs. New Silver: Concluding Takeaways

Although we’ve tried to give you solid guidelines on which fix and flip lender to apply to, remember that each borrower and situation is different. Nothing that’s written here is meant to be the set-in-stone truth. Your situation and project are unique, and Kiavi and New Silver acknowledge that.

When it comes to finding an online fix and flip lender, Kiavi and New Silver are two lenders to consider. Try applying to both.

Frequently Asked Questions (FAQ)

To help you make an informed decision, here are some frequently asked questions about New Silver and Kiavi’s fix and flip loans.

What is a fix and flip loan?

A fix-and-flip loan is a short-term loan designed for real estate investors who buy, renovate, and sell properties for a profit. These loans typically cover the purchase and renovation costs and are repaid within a year or two.

How do New Silver’s interest rates compare to Kiavi’s?

New Silver offers interest rates starting at 6%, while Kiavi also provides competitive rates. However, Kiavi’s primary advantage is its high leverage options, allowing you to secure larger loans with less initial capital.

What are the typical loan terms offered by each lender?

New Silver offers flexible loan terms ranging from 12 months for fix and flip projects to up to 30 years for rental loans. Kiavi focuses on high leverage and typically provides short-term loans for fix and flip projects.

How quickly can I get approved with New Silver or Kiavi?

• New Silver: Instant online pre-approvals, fast approval process.
• Kiavi: Streamlined approval process, faster for repeat borrowers.

Both lenders offer efficient approval processes, but New Silver is known for its speed, providing instant pre-approvals online.

What are the loan amount limits for each lender?

New Silver provides loans starting at $75,000, with the potential for higher amounts depending on the project. Kiavi offers high-leverage loans, covering up to 95% of the loan-to-cost ratio, allowing for larger loan amounts with less upfront capital.

Are there any prepayment penalties with New Silver or Kiavi?

Kiavi does not charge prepayment penalties, allowing you to repay your loan early without incurring additional costs. New Silver’s policies may vary, so it’s essential to review their terms before committing to a loan.

• Kiavi: No prepayment penalties.
• New Silver: Review terms for specific prepayment policies.

Which lender is better for first-time investors?

For first-time investors, New Silver’s fast approval process and flexible terms can provide a smooth entry into the fix and flip market. Kiavi’s high-leverage options may also appeal to those looking to maximize their investment potential with less upfront capital.

“Choosing between New Silver and Kiavi depends on your investment goals and needs. Consider factors like speed, leverage, and customer service to find the best fit for your real estate ventures.”

Both lenders have their strengths, so evaluate your priorities and choose the one that aligns best with your investment strategy.

How important are online reviews when choosing a lender?

Online reviews provide valuable insights into the experiences of other investors, helping you gauge the quality of service and overall satisfaction with a lender. Both New Silver and Kiavi have positive reviews, but it’s essential to consider your priorities and what’s most important to you in a lending partner.

• Read multiple reviews to get a balanced perspective.
• Look for consistent themes in customer feedback.
• Consider both positive and negative reviews to make an informed decision.

By taking the time to research and understand the experiences of others, you can make a more informed choice when selecting a lender for your fix-and-flip projects.

Does New Silver offer instant proof of funds letters?

Yes, New Silver provides instant proof of funds letters, which can help you secure deals when bidding on properties. This feature is particularly beneficial in competitive markets where quick action is necessary.

Is an appraisal required for a loan with Kiavi?

Yes, Kiavi typically requires an appraisal to determine the property’s value and ensure the loan amount aligns with the project’s potential. This step helps protect both the lender and the investor by ensuring the investment is sound.

What types of properties qualify for fix and flip loans?

Fix and flip loans are generally available for a wide range of property types. These include single-family homes, multi-family residences, condos, townhouses, and sometimes even commercial properties. However, the specific types of properties that qualify can vary between lenders. For instance, while New Silver and Kiavi both finance residential properties, you should check with each lender to see if they have any restrictions or preferences.

It’s crucial to ensure the property you’re considering aligns with the lender’s criteria. Doing so can save time and help streamline the approval process.

Which lender offers better customer service?

When it comes to customer service, both New Silver and Kiavi have their strengths, but they cater to different investor needs. New Silver is often praised for its fast response times and the ability to provide instant online pre-approvals. This efficiency can be a game-changer when you’re trying to secure a deal quickly.

On the other hand, Kiavi is appreciated for its transparent communication and support throughout the loan process. They focus on making the experience smooth, particularly for repeat borrowers who benefit from even faster service.

Ultimately, the best choice depends on what you value most in customer service. Do you prioritize speed and quick approvals, or is comprehensive support throughout the loan term more important to you?

• New Silver: Fast responses and instant pre-approvals.
• Kiavi: Transparent communication and support.

Do New Silver or Kiavi charge application fees?

Understanding the fee structure is critical when choosing a lender. New Silver typically does not charge application fees, which can help keep your initial costs down. This approach aligns with their goal of providing a straightforward and transparent lending process.

• New Silver: No application fees.
• Kiavi: No application fees.

Both lenders aim to make the application process as accessible as possible, allowing you to focus more on your investment rather than upfront costs.

It’s always a good idea to confirm the latest fee structures directly with the lender, as terms and conditions can change over time.

What determines the loan-to-cost ratio for fix and flip loans?

The loan-to-cost (LTC) ratio is determined by the total project costs, including the purchase price and renovation expenses. Lenders use this ratio to assess the risk associated with the loan. A higher LTC means the lender is covering a larger portion of the project costs, which can be advantageous for investors with limited upfront capital.

Can I refinance an existing property with these lenders?

Yes, both New Silver and Kiavi offer refinancing options for existing properties. Refinancing can be a strategic move to free up capital for new investments or to reduce your interest rate and monthly payments.

• New Silver: Offers refinancing for various property types.
• Kiavi: Provides refinancing with flexible terms.

Before proceeding with refinancing, evaluate the terms and potential savings to ensure they aligns with your investment strategy.

Refinancing can be a powerful tool, but it requires careful consideration of the costs and benefits involved.

What role does credit score play in loan approval?

Your credit score is a significant factor in the loan approval process for both New Silver and Kiavi. A higher credit score generally indicates a lower risk for lenders, which can lead to more favorable loan terms, such as lower interest rates and higher loan amounts.

While both lenders are flexible and cater to various credit profiles, maintaining a good credit score can enhance your chances of securing the best possible terms. If your credit score needs improvement, consider taking steps to boost it before applying for a loan.

Are there geographic limitations for either lender?

Geographic limitations can affect your ability to secure a loan with New Silver or Kiavi. Both lenders operate in multiple states, but their coverage areas may vary. It’s essential to verify that the lender you choose operates in the state where your property is located.

What should I prepare when applying for a fix and flip loan?

Preparation is key to a successful loan application. When applying for a fix and flip loan with New Silver or Kiavi, gather all necessary documentation ahead of time. This includes:

• Proof of income and employment.
• Credit history and score.
• A detailed business plan outlining the project scope, costs, and timeline.
• Information about the property, including purchase price and estimated renovation costs.

Having these documents ready can expedite the approval process and demonstrate your preparedness to the lender.

Thorough preparation can set you apart from other applicants and improve your chances of securing favorable loan terms.

How do I minimize risk in fix and flip investments?

Minimizing risk is crucial in fix and flip investments, where unexpected costs and market fluctuations can impact your returns. Here are some strategies to reduce risk:

• Conduct thorough market research to understand local trends and property values.
• Create a detailed budget and include a contingency fund for unforeseen expenses.
• Work with experienced contractors and professionals to ensure quality renovations.
• Consider the property’s location and its potential for appreciation.

By implementing these strategies, you can mitigate risks and increase the likelihood of a successful fix-and-flip project.

Remember, real estate investing is about balancing risk and reward. With careful planning and execution, you can achieve your investment goals.

In conclusion, choosing between New Silver and Kiavi depends on your specific needs and priorities. Whether you value fast approvals, high leverage, or excellent customer service, both lenders offer unique advantages. By aligning your choice with your investment strategy, you can confidently pursue your fix-and-flip projects and achieve your financial objectives.

What’s the difference between a hard money lender and a traditional lender?

Hard money lenders, like New Silver and Kiavi, offer short-term loans secured by real estate. These loans are typically used for fix-and-flip projects and have higher interest rates compared to traditional loans. The primary advantage of hard money loans is their speed and flexibility, allowing investors to secure funding quickly.

Traditional lenders, such as banks, offer longer-term loans with lower interest rates. However, they often require more extensive documentation and have stricter approval criteria, making them less suitable for time-sensitive investments.

• Hard Money Lenders: Fast approval, higher interest rates, flexible terms.
• Traditional Lenders: Slower approval, lower interest rates, stricter criteria.

Choosing between the two depends on your investment needs and timeline. Hard money loans are ideal for quick flips, while traditional loans may be better for long-term investments.

Can investors with an LLC apply for these loans?

Yes, investors with an LLC can apply for fix and flip loans with both New Silver and Kiavi. Operating through an LLC can offer liability protection and potential tax benefits, making it a popular choice for real estate investors.

“Investors with an LLC can access the same loan products and terms as individual investors, provided they meet the lender’s criteria.”

Ensure your LLC is properly structured and compliant with state regulations to facilitate a smooth loan application process.

Working through an LLC can enhance your investment strategy and provide additional legal and financial benefits.

What happens if I can’t repay the loan as planned?

If you’re unable to repay the loan as planned, it’s crucial to communicate with your lender immediately. Both New Silver and Kiavi may offer options to help you manage the situation, such as loan modifications or extensions. However, failure to repay could lead to foreclosure, where the lender takes possession of the property to recover their investment.

How do I decide between short-term and long-term loans?

The decision between short-term and long-term loans depends on your investment strategy and goals. Short-term loans are ideal for fix and flip projects, where the property is quickly renovated and sold. Long-term loans, on the other hand, are better suited for rental properties or buy-and-hold strategies.

Are there additional costs involved in these loans?

“In addition to interest rates, you may encounter costs such as origination fees, appraisal fees, and closing costs. It’s essential to factor these into your budget when considering fix and flip loans.”

By understanding all potential costs, you can make informed decisions and ensure your investment remains profitable.

Remember, the right financing can make all the difference in your success as a real estate investor. By choosing a lender that aligns with your needs, you can confidently pursue your fix-and-flip projects and achieve your financial objectives.

How does the after-repair value affect the loan amount?

The after-repair value (ARV) is a critical factor in determining the loan amount for fix and flip projects. Lenders use the ARV to assess the potential value of the property after renovations are complete. The higher the ARV, the more likely you are to secure a larger loan.

New Silver and Kiavi both consider the ARV when evaluating loan applications, ensuring that the investment aligns with the property’s potential value.

Is Kiavi suitable for seasoned investors?

Kiavi is an excellent choice for seasoned investors due to its high leverage options and streamlined approval process. Experienced investors can benefit from Kiavi’s competitive rates and no prepayment penalties, allowing for greater flexibility in managing their investments.

Moreover, Kiavi’s focus on transparency and support can enhance the investment experience for those familiar with the fix and flip market.

In summary, both New Silver and Kiavi offer valuable financing solutions for real estate investors. By understanding their unique features and aligning them with your investment strategy, you can make an informed decision and pursue successful fix-and-flip projects.