What is a pre-payment penalty?
A pre-payment penalty is a fee lenders charge if you pay off your loan early, such as refinancing or making extra payments. It helps lenders recover lost interest. Not all loans have this penalty, so check your loan terms to avoid surprises.
Do I need an appraisal?
Yes, in most cases an appraisal is required to determine the property’s current market value. For Fix & Flip loans, we also consider the After Renovation Value (ARV) to project the property’s worth once improvements are complete.
What is ARV? (After Renovation Value)
ARV is the estimated value of a property after it has been renovated or improved. Lenders use ARV to calculate how much financing you can qualify for on rehab and Fix & Flip projects.
What is a Fix & Flip Loan?
A Fix & Flip loan is a short-term financing option for investors who buy undervalued properties, renovate them, and resell for a profit. These loans are based on the purchase price plus renovation costs, often tied to the ARV, and are designed for fast funding and short repayment terms.
How does the IRS define an investment property?
According to the IRS, an investment property is real estate purchased with the intention of generating income or profit. This can be through rental income, appreciation, or resale after improvements. Unlike a primary residence, investment properties are not used as the borrower’s main home.
How many investment properties can I own?
Traditional banks often cap investors at 10 properties, but with ProInvestor Capital, there are no hard limits. We work with investors building portfolios from a single property to hundreds of doors.
How do I get a mortgage with no personal income?
With our No-Doc and DSCR loan programs, you can qualify without W-2s, tax returns, or personal income documentation. Instead, approval is based on property cash flow, rental income, or ARV, making it easier to scale your investments.
Can I get a fixed interest rate?
Yes. We offer both fixed and adjustable-rate options, depending on your investment goals. A fixed rate provides predictable monthly payments, while adjustable rates may offer lower initial costs.
What is the minimum credit score for an investment loan?
While requirements vary by program, most of our loans can be approved with a minimum credit score of 620. Stronger credit profiles may qualify for better rates and terms, but we also specialize in creative solutions for investors with unique circumstances.
