2 Key Lenders for Low-Cost Fix and Flip Renovation Loans

Kiavi and New Silver are the two low-cost fix & flip lenders we’ll look at. Which one is right for you? Read on to find out.

Low-Cost Fix and Flip Loans for Renovation Projects

So, let’s talk about something that could either make or break your next big real estate move—money. More specifically, fix and flip loans. You know, the kind of financing that gets you from, “I think I’ll buy this broken-down house,” to “Whoa, I just made a killing on this flip.” It’s not all sunshine and rainbows, though. Picking the right loan, honestly? That could be the difference between flipping a profit and flipping out (pun intended).

I’m going to dive into two options—Kiavi’s bridge loans and New Silver’s construction loans—both of which claim to be the answer to your renovation dreams. Spoiler alert: they’re different, but not in ways you’d expect. Or maybe they are—depends on how much caffeine you’ve had today.

Understanding Fix and Flip Loans

Ever find yourself staring at a crumbling house, thinking, “This could be something… if only?” Enter fix and flip loans. These aren’t your typical, boring, sit-on-the-porch-with-lemonade mortgages. Nope. These are fast, furious, and laser-focused on turning wrecks into riches.

Here’s the catch, though. It’s not just about picking any old loan. You’ve got options—bridge loans and construction loans—each with its quirks. Imagine them like tools in a toolbox. A hammer’s great until you need a screwdriver, right? So, picking the right one? Yeah, it matters. A lot.

Kiavi’s Bridge Loans for Renovation Projects

Overview

When it comes to Kiavi’s bridge loans, think of them like a Band Aid—short-term, quick relief. You need money, and you need it now. You can almost hear the clock ticking. These loans are built for speed—like, “You found a property on Tuesday, and by Friday, you’re ready to go.” No, seriously. Closing in as few as 10 days. That’s not just fast—it’s warp speed in the financing world.

But, here’s the thing. They’re short-term. You’re not holding on to this loan for years. Think weeks, or maybe months, if you’re lucky (or unlucky, depending on how much you’re sweating those interest payments).

Key Features and Benefits

Fast, fast, FAST: Did I mention how quickly these things close? You’ve got a property in your sights—blink, and you might miss the deal. A bridge loan helps you pounce.
Flexibility… kind of: Sure, you can use it for acquisition and renovation. But don’t get too comfortable—it’s all very temporary, like a summer romance.
Interest-only payments: Great for cash flow, unless you hate the idea of a big balloon payment at the end. But hey, who doesn’t love a financial cliffhanger?

Loan Terms and Conditions

High interest rates: Oh, you thought fast money came cheap? Ha! Think again. Bridge loans are like a triple espresso—gets you moving but leaves you jittery.
Collateral drama: You’ll need to put the property—or maybe another one—on the line. It’s like playing poker with your real estate portfolio. Risky, but the payoffs? Huge..

Approval Process

Forget those endless forms you’d fill out at a bank. This is streamlined, laser-focused. They care more about the property than about you (brutal but true).

New Silver’s Construction Loans for Renovation Projects

Overview

Now, if Kiavi’s loans are a racecar, New Silver’s construction loans are more like, well, a construction crane—slow, steady, and a bit unwieldy, but man, do they get the heavy lifting done. If you’re renovating something beyond just a paint job, these are your go-to.

And here’s where things get interesting. New Silver’s construction loans don’t just cover the usual—nope, they go deep. Like deep into renovation, where you’re tearing out walls and re-imagining entire rooms. This is for the ambitious renovators. Think “I’m going to turn this three-bedroom into a modern paradise with a chef’s kitchen and maybe a rooftop pool.” Alright, maybe no pool, but you get it.

Types of Construction Loans

Construction-only loans: The name says it all. You’re borrowing just to build, and then it’s on you to figure out the rest. Kind of like juggling, but with money.
Renovation loans: Yeah, they cover the whole shebang. From buying the property to ripping out those hideous ’70s carpets.

Key Features and Benefits

Up to 100% financing: Yeah, you read that right. New Silver will sometimes cover your entire project cost, as long as it’s residential. Like finding a four-leaf clover, but in financing.
Loan-to-Cost? Loan-to-ARV?: These are fancy terms, but what they mean is you get a lot of flexibility to tailor the loan to your project. It’s almost like they let you build your own loan… kind of.
Interest-only payments: Perfect for when you’re watching the paint dry (literally) and waiting for the big sale.

Loan Terms and Conditions

Rates and fees: The rates? Not too bad—starting around 9.75%, with origination fees that aren’t laughable, but hey, this isn’t a charity.

Application Process

Grab your blueprints, budgets, and probably some Tylenol because New Silver wants all the details. It’s not a quick-and-easy form, but it’s worth it if you’ve got a plan.

Comparing Kiavi’s Bridge Loans and New Silver’s Construction Loans

Similarities

They both get the job done, but it’s like comparing a firework to a bonfire. Sure, they both light up the night, but they serve different purposes. With bridge loans, it’s all about speed. With construction loans, it’s about laying solid groundwork.

Differences? Oh, plenty

Purpose: Bridge loans are all about grabbing that new property now, while construction loans are about making something beautiful (or profitable, more like) over time.
Funding Flexibility: Want some breathing room during your renovation? Construction loans got you. Bridge loans? Not so much.
Risk and reward: Both have their risks—bridge loans with those balloon payments and construction loans with the constant milestone check-ins. Pick your poison.

Choosing the Right Loan for Your Fix and Flip Project

How do you choose? It’s like trying to pick between pizza or burgers. Both delicious. Both dangerous if you overdo it. It all comes down to timing and ambition.

Timeline: Need cash fast? Bridge loan. Got time and a vision? Construction loan.
Scope: Small touch-ups? Bridge loan. Major overhaul? Construction.
Exit strategy: Flipping fast? Bridge. Holding a little longer? Construction.

Tips for Securing Low-Cost Fix and Flip Loans

Here’s the part where I give you advice—take it or leave it, but I’d recommend you listen.

Details, Details: Lenders want to see you’ve got your ducks in a row (plans, budgets, etc.). This is not a “wing-it” situation.
Negotiate (Because Why Not?): You’ve flipped houses before? Good. Use that experience to your advantage. Squeeze out better rates.
Confidence Matters: Walk into that lender’s office (or Zoom call) like you’ve flipped 20 houses, even if you’ve only done 2.

Conclusion

Whether you’re sprinting to flip a quick deal with a bridge loan or slowly crafting a masterpiece with a construction loan, it all boils down to one thing: finding the right tool for the job. Make sure you pick wisely. Otherwise, you’ll end up with a lot more headaches than profits. And trust me, no one flips houses for the headaches.

Now go out there, pick your loan, and let’s see what you can do. Just don’t forget—sometimes, it’s not just about what you build, but how you finance it.