Ignite FB Tracking Pixel3 Ways to Fund a Flip With Bad Credit - Greg Watson
Teel & Waters Real Estate Company Inc
Greg Watson, Teel & Waters Real Estate Company IncPhone: (256) 682-6605
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3 Ways to Fund a Flip With Bad Credit

by Greg Watson 05/17/2023

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:

Private Loans

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.

Home Equity

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

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.

About the Author
Author

Greg Watson

Hi, I'm Greg Watson your favorite Northwest Florida Realtor. I have been a teacher and coach for 21 years and have been at Crestview High School in Crestview, FL for 10 years teaching P.E. and coaching boys basketball. In 2019, we were the Class 7A State Champions! I was born and raised in Huntsville, AL and went to college to play basketball at Lipscomb University in Nashville, TN. I moved to the Emerald Coast 10 years ago and I absolutely love it. This will be my home forever. 

I started selling real estate over 2 years ago and I can't imagine doing anything else. I love helping people and the opportunity to see the smiles on people's faces at closing time is an amazing feeling. I am excited about helping you find your next home here or helping you to sell your home. I am a hard worker and will do everything I can to help you with your needs. I am excited about this opportunity and I ask that you give me a chance. You won't regret it!