Applying for Investment Loans
Apply for Investment Loans — Fast, Flexible Capital for Real Estate Investors
Investment loans offer short- to medium-term capital that helps real estate investors buy, renovate, bail out, or refinance properties quickly. This guide clarifies how equity-focused private lending works across purchases, fix-and-flips, bailouts, bridge loans, DSCR loans, and P&L-based approvals so you can match financing to the deal. When traditional mortgage timelines and documentation cause missed opportunities, equity-and-exit underwriting fills the gap by prioritizing the property’s value and a clear exit plan over conventional income verification. You’ll find key requirements, step-by-step application stages, program LTV and ARV guidelines, DSCR examples, and practical checklists to get a deal submitted faster. Program overviews, required documents, sample timelines (including 24‑hour pre-approval and 5–7 day closings), and common investor concerns — credit, foreclosure bailouts, and subordinate liens — are all covered. Keywords like investment property, hard money loans, loan application, loan-to-value (LTV), after-repair value (ARV), DSCR loans, and fast loan approval are woven throughout as a practical resource for active investors.
Why Choose Fidelity Funding for Your Investment Property Loan?
Fidelity Funding is a private capital lender focused on fast, equity-based approvals and hard-money programs built for time-sensitive transactions. We underwrite around property equity and the exit plan, reducing reliance on conventional income documentation so decisions happen faster — whether you’re buying, rehabbing, or bailing out a property. Our clients get direct access to in-house underwriters and private capital, with strong service across California and the ability to consider larger nationwide loans above $1,000,000. Knowing when private lending is the smarter route — and what to prepare — helps borrowers move quickly and with confidence.
Fidelity Funding stands out with operational advantages investors value most:
- Speed: Fast conditional approvals — sometimes within 24 hours — and closings that can finish in 5–7 days for qualified deals.
- Equity-based underwriting: Loan decisions emphasize LTV and ARV instead of relying solely on credit scores or tax returns.
- Program flexibility: From fix-and-flip to DSCR and foreclosure bailouts, our programs accommodate complex investor needs.
These strengths show how equity-focused underwriting streamlines qualification and how different loan programs align with investor strategies. The next section explains the mechanics of equity-based approvals with a simple LTV/ARV example.
How Does Equity-Based Approval Simplify Investment Loan Qualification?
Equity-based approval centers on the property’s value and a clear exit plan, which helps investors with non-traditional income, recent credit events, or multiple properties secure funding faster. Underwriters size loans by applying LTV or ARV percentages against the property value and program limits — for example, an ARV of $200,000 with a 75% LTV supports a $150,000 loan. This approach reduces emphasis on FICO scores and tax returns and focuses on collateral strength and a viable exit. When the appraisal, title, and rehab budget line up with the exit plan, underwriting moves quickly — a good segue into the loan programs we offer.
What Loan Programs Does Fidelity Funding Offer for Real Estate Investors?
We provide a range of hard-money and alternative financing programs designed around equity metrics and fast execution. Typical programs include purchase loans for quick acquisitions, fix-and-flip loans sized to ARV with draw schedules, cash-out refinances for stabilized properties, bridge loans for short holds, foreclosure bailouts to stop imminent loss, DSCR loans that underwrite from property cash flow, and P&L-based approvals for experienced investors. Program details vary — fix-and-flip deals can reach higher ARV percentages in select cases, cash-out refis commonly top out near 75% LTV, and expedited closings are available when approvals and funding are prioritized. The next section lists the key application requirements and documents to prepare.
What Are the Key Requirements for Applying for Investment Loans?
Approval rests on three linked elements: property equity (LTV/ARV), a credible exit strategy, and sufficient documentation to verify the collateral and your plan. Lenders review property condition, market comps, rehab budgets, and title status, and they expect a clear exit — sale, refinance, or long-term hold — to determine loan sizing. Submitting a complete package up front shortens review time. Common items include the purchase contract, condition photos and scope of work, a title search or preliminary title report, an itemized rehab budget tied to ARV, and proof of funds for reserves. Below is a concise comparison of common loan types and their typical underwriting attributes to help match a deal to the right program.
The table below compares typical underwriting attributes across main investment loan programs:
| Loan Type | Typical LTV/ARV | Typical Term | Common Required Documents |
|---|---|---|---|
| Purchase Loan | Up to program limit based on appraisal | Short-term bridge (often 6–24 months) | Purchase agreement, proof of funds, property details |
| Fix & Flip Loan | ARV-based up to ~85–90% (case-dependent) | 6–12 months | Rehab budget, ARV comps, scope of work, photos |
| Cash-Out Refinance | Up to ~75% LTV (typical) | Medium-term (12–36 months) | Current mortgage statement, title, property appraisal |
| DSCR Loan | Based on NOI coverage ratios | Medium to long term | Rent roll, operating expenses, lease agreements |
| Commercial Loan | Varied by property type and income | Medium-term | Income statements, leases, commercial appraisal |
What Property Types and Loan-to-Value Ratios Are Accepted?
We finance a wide range of investment property types: single-family rentals, small multi-family buildings, certain small commercial properties, and, in approved cases, land or construction projects with a clear exit plan. LTV and ARV allowances depend on the program and property condition — fix-and-flip loans typically use ARV for sizing and can reach higher ARV percentages in selected deals, while cash-out refis usually have lower LTV caps. Special situations like second or third trust deeds, raw land, and construction loans are reviewed case-by-case and may require extra collateral or guarantees. Identifying the property class and realistic ARV is the first step toward predictable loan sizing and faster underwriting.
Which Documents and Financial Information Are Needed for Approval?
A focused document package speeds underwriting. Before submission, assemble the signed purchase contract (when applicable), clear property photos and a detailed scope of work for rehab loans, an itemized rehab budget tied to ARV, a current title search or preliminary title report, and proof of reserves or source of funds for down payment or draws. For DSCR and portfolio loans, provide rent rolls, lease agreements, and operating expense statements to establish NOI. P&L statements and bank statements can substitute for tax returns in P&L-based approvals. Delivering a complete package up front reduces follow-ups and positions your deal for prioritized underwriting and expedited closings.
How Does the Investment Loan Application Process Work with Fidelity Funding?
Our application process follows a straightforward sequence built for speed: submit materials, receive a fast review/pre-approval, complete valuation and underwriting, finalize documents, then close and fund. Each stage aligns the property’s equity and exit plan with program parameters. Because we underwrite in-house and use private capital, we can compress review cycles for qualified deals. Expect clear touchpoints where additional items may be requested — providing those promptly shortens each stage and increases the chances of closing within the 5–7 day window on expedited transactions. The numbered steps below summarize the typical workflow and timelines to aim for.
Follow these steps to move from submission to funding:
- Submit Deal Materials: Send the purchase contract or property information, photos, rehab budget, title status, and your proposed exit strategy.
- Fast Review / Pre-Approval: Underwriters assess equity, ARV comps, and exit feasibility — qualified deals can receive pre-approval in as little as 24 hours.
- Valuation & Underwriting: The property is appraised or broker-priced; underwriting verifies title, budget, and exit viability.
- Final Docs & Closing: Lender prepares closing documents; once signed, expedited transactions often fund in 5–7 days.
Submitting a complete package and responding quickly to requests accelerates each step. The next subsection explains the stages in more detail and the factors that affect speed.
What Are the Step-by-Step Stages from Submission to Funding?
The lifecycle of a hard-money loan is built for clarity and speed — start with a focused submission and stay responsive through valuation and closing for the best outcome. Provide core deal documents and a clear exit strategy so the underwriter can size the loan quickly. During valuation, we confirm ARV with comps and may request additional photos or contractor bids; title review runs in parallel to surface any issues. After underwriting signs off, final documents move to closing and funding. Being ready with escrow instructions and required signatories shortens the final interval.
How Fast Can Investors Expect Loan Approval and Closing?
Timelines vary by complexity, but baseline expectations are clear: straightforward, well-documented deals can receive approvals in as little as 24 hours, and expedited closings often fund in 5–7 days. Delays commonly come from title defects, complex borrower entities, incomplete rehab budgets, or appraisal timing. Conversely, complete contractor bids, clear property photos, and clean title documentation speed the process. Proactive communication between borrower, contractor, and lender and preemptive resolution of title or documentation issues position your deal for the fastest turnaround.
What Types of Hard Money Loans Are Available for Real Estate Investment?
Hard-money programs are tailored to specific investor needs — fast acquisition, renovation financing, urgent bailouts, or income-based longer-term financing. Each product lever uses different underwriting levers such as LTV, ARV, or NOI coverage. Fix-and-flip loans rely on ARV and draw schedules, purchase loans enable rapid closings with equity sizing, foreclosure bailouts provide urgent liquidity, and DSCR loans underwrite to rental income for longer holds. The quick-reference table below aligns program features with funding speed and the typical borrower profile so you can match capital to strategy.
| Program | Sample LTV / ARV | Funding Speed | Common Fees | Ideal Borrower Profile |
|---|---|---|---|---|
| Purchase Loan | LTV based on appraisal and equity | 3–10 days (expedited) | Origination and customary closing fees | Investors needing quick acquisition funding |
| Fix & Flip Loan | ARV-based up to ~85–90% (case-dependent) | 5–14 days | Draw management and inspection fees | Active flippers needing rehab draws |
| Cash-Out Refinance | Up to ~75% LTV | 1–3 weeks | Refi and payoff fees | Investors seeking liquidity from equity |
| Foreclosure Bailout | Case-by-case equity-based | 24–72 hours (urgency) | Urgency premium possible | Owners facing imminent foreclosure |
| DSCR Loan | Based on NOI ratios | 1–3 weeks | Underwriting fees tied to income docs | Rental portfolio investors |
| P&L-Based Approval | Asset or P&L substantiation | 1–2 weeks | Documentation review fees | Experienced investors with business income |
How Do Fix and Flip Loans Support Property Renovation Projects?
Fix-and-flip loans are ARV-driven and fund both purchase and a rehab budget, with draws tied to milestone inspections to manage risk. The lender sizes the initial advance conservatively and releases rehab draws as verified work is completed, protecting both parties while keeping the project moving. Typically, acquisition funds are advanced at closing, rehab draws follow verified progress, and the loan is repaid at sale or refinance within a 6–12 month holding period. Tying the rehab budget to contractor bids and clear milestones speeds draw releases and helps avoid costly delays.
What Are Foreclosure Bailout and Bridge Loan Solutions?
Foreclosure bailouts and bridge loans are short-term tools to stop foreclosure, provide interim liquidity, or bridge timing gaps between transactions when permanent financing isn’t yet available. Bailouts focus on rapid funding to cure a delinquency; title clarity and proof of funds are critical. Bridge loans cover short-term capital needs — for example, closing on a replacement property before a sale — and are repaid with sale proceeds or later refinancing. These products require a clear exit or cure plan, and the speed of documentation often determines whether they can interrupt a foreclosure timeline.
How Do DSCR Loans Work for Rental Property Investors?
DSCR (Debt Service Coverage Ratio) loans underwrite using property cash flow — the ratio of Net Operating Income (NOI) to annual debt service — so investors qualify based on asset performance instead of personal income. The formula is DSCR = NOI / Annual Debt Service, and lenders set minimum DSCR thresholds to ensure debt coverage. For investors with verified rent rolls and expense records, DSCR lending enables scaling rental portfolios without relying on conventional income documentation. The table below shows sample DSCR calculations and typical approval thresholds to help estimate qualification.
| Example Property NOI | Annual Debt Service | DSCR Value | Typical Approval Threshold |
|---|---|---|---|
| $24,000 | $18,000 | 1.33 | 1.20–1.30 |
| $36,000 | $30,000 | 1.20 | 1.20–1.35 |
| $48,000 | $36,000 | 1.33 | 1.25–1.40 |
What Is the DSCR Loan Application Process and Eligibility?
DSCR underwriting starts with rent rolls, lease agreements, operating expense statements, and recent performance records to calculate reliable NOI. Lenders prefer verified rents and documented expenses; where leases are market-based, reasonable stabilization assumptions may apply. Once NOI is established, the lender models debt service for the proposed loan to calculate DSCR — if the ratio meets the program threshold, the file advances to valuation and title review. This pathway helps investors with non-traditional personal income qualify based on property performance.
What Are the Benefits of DSCR Loans Compared to Traditional Financing?
DSCR loans shift focus from borrower income to repeatable property cash flow, which benefits portfolio investors and those with complex tax or employment situations. Advantages include streamlined approval for income-generating assets, the option to underwrite multiple properties as a performance pool, and typically faster decisions when rents and expenses are well documented. Trade-offs can include higher interest rates or shorter terms than conventional mortgages, so weigh cost versus the speed and scaling benefits. For investors prioritizing portfolio growth and income-based qualification, DSCR loans are often the more practical choice.
What Common Concerns Do Investors Have When Applying for Investment Loans?
Investors frequently worry about poor credit, non-traditional income, vacant properties, or foreclosure situations — but equity-based underwriting and alternative documentation paths often remove those barriers. Lenders place greater weight on collateral strength, exit strategy, and reserves than on FICO in many cases; P&L-based approvals and DSCR underwriting provide alternatives to tax-return or W‑2 dependence. Knowing how title issues, property condition, and incomplete documentation slow timelines helps you address problems before submission. The sections below cover bad-credit scenarios and how different property and urgent-rescue cases are handled.
Can I Get Approved with Bad Credit or Complex Financial Profiles?
Yes. Investors with lower credit scores or complex finances can still secure funding if the property equity, exit strategy, NOI, or documented business performance offsets personal credit limitations. Alternative pathways include P&L-based approvals, asset statements, bank-statement underwriting, or strong DSCRs. Prepare supporting documents — detailed P&Ls, bank statements showing reserves, contractor bids, and a clear exit plan — and expect rate/term trade-offs for higher-risk profiles. Being upfront about credit history and explaining anomalies up front reduces underwriter friction.
How Does Fidelity Funding Handle Different Property Types and Foreclosure Situations?
We evaluate property eligibility by type, condition, and the clarity of the exit plan. Residential and small multi-family properties are commonly financeable; land and construction loans receive stricter underwriting and collateral requirements. For foreclosure bailouts, title clarity and a practical cure or payoff plan are essential — rapid documentation is critical to interrupt foreclosure timelines. Complex cases, such as subordinate liens or disputed title items, are reviewed case-by-case and may require additional collateral, escrow structuring, or short-term protections. Preparing the right documentation and a clear exit plan speeds underwriting decisions.
Fidelity Funding operates with in-house underwriting and direct private capital, prioritizing speed and equity-based approvals to help investors meet time-sensitive goals while managing risk through property-focused due diligence and clear exit strategies.
If you’re ready to move quickly, gather the purchase agreement, property photos and rehab plan, title information, rent rolls or P&L statements (if applicable), and a clear exit strategy. Submit these materials for a fast review, request a pre-approval that can occur in as little as 24 hours, or complete the lender’s deal submission form to start underwriting. If you prefer to talk through a deal, call our lending team — we serve Glendale and broader California and will consider larger nationwide loans above $1,000,000. Follow these steps to turn an opportunity into funded capital and keep your deal timeline on track.
Frequently Asked Questions
What is the difference between hard money loans and traditional mortgages?
Hard money loans are short-term financing based primarily on the property used as collateral rather than the borrower’s full credit profile. Traditional mortgages focus more on credit scores, income verification, and financial history. Hard money typically funds faster and suits investors who need quick capital for purchases or renovations, though it often carries higher interest rates and shorter terms than conventional loans.
How can I improve my chances of getting approved for an investment loan?
Present a strong exit strategy and show clear property equity. Submit a complete documentation package — a detailed rehab budget, proof of funds, and a realistic repayment plan — and stay responsive to your lender’s requests. Clear communication and a polished package significantly increase approval speed and likelihood.
What are the typical fees associated with investment loans?
Fees commonly include origination charges, closing costs, and draw management or inspection fees on rehab projects. Origination fees often range from 1% to 3% of the loan amount; closing costs vary by property and location. Ask your lender for a full fee breakdown up front so you can plan total borrowing costs.
Can I use an investment loan for properties that need significant repairs?
Yes. Fix-and-flip loans are designed for properties that need major work, funding both purchase and renovation costs with draws tied to project milestones. Lenders size loans by ARV to ensure the rehab supports the expected post-renovation value, making these loans ideal for investors improving distressed properties quickly.
What should I do if my investment property is in foreclosure?
Consider a foreclosure bailout loan to secure quick funding to cure the default and stop foreclosure. You’ll need a clear payoff plan and proof of funds. Acting immediately and providing complete documentation improves the chance of securing the emergency financing you need.
How does the loan-to-value (LTV) ratio affect my investment loan?
LTV determines how much you can borrow relative to the property’s appraised value. A lower LTV means less lender risk and typically better terms; a higher LTV may trigger stricter underwriting and higher costs. Understanding LTV helps you gauge borrowing capacity and structure the deal appropriately.
What types of properties are eligible for investment loans?
Investment loans cover single-family homes, small multi-family units, some small commercial buildings, and select land or construction projects when paired with a clear exit plan. Eligibility depends on property condition and the strength of the exit strategy, so present a realistic plan and documentation to improve approval odds.
Conclusion
Investment loans give real estate investors fast, flexible financing to close deals, complete rehabs, and preserve opportunities conventional loans often miss. By understanding equity-based underwriting and the range of available programs, you can choose the option that best fits your strategy. Gather your documents and contact our team for a swift pre-approval — Fidelity Funding can help you move quickly and convert opportunities into funded projects.
