Loan Types

Loan Types

At Bluehouse Funding we help you navigate a range of asset-based loan types designed to get your real estate projects funded quickly and flexibly. Whether you’re flipping your first house or scaling a rental portfolio, we’re here to guide you through every step.

Please note: We exclusively offer loans for investment properties. All loans must be for non-owner-occupied residential or commercial real estate. That means we do not provide loans for homes you intend to live in — only for properties purchased for business or investment purposes, such as rentals, flips, or development projects.

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🔧 Short-Term Fix & Flip Loans

Ideal for: First-time or seasoned investors flipping residential properties

Fix & flip loans are short-term loans used to purchase and renovate a property with the intention of reselling it for a profit, or refinancing into a long-term loan for cash flow. These loans are based on the after repair (ARV) of the property, not your income or credit score, making them a great fit for investors who need fast approvals and flexible funding.

The loan typically covers up to 90% of the purchase price and 100% of the renovation budget, capped at 65-70% of ARV, with interest-only payments over 6–12 months. These loans are designed for speed and leverage, helping you acquire, improve, and sell/refinance a property within a year. You’ll need a detailed bid from a licensed contractor, as rehab funds are released in stages based on a draw schedule. For each phase, you’ll cover the costs upfront, then get reimbursed after inspection.

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🏢 DSCR Loans (Rental Properties)

Ideal for: Investors looking to refinance after a flip or acquire long-term rental properties

DSCR (Debt Service Coverage Ratio) loans are designed for buy-and-hold investors who want to build a cash-flowing rental portfolio. Unlike traditional mortgages, DSCR loans are underwritten based on the income the property generates, not your personal debt-to-income ratio, employment history, or tax returns. Most lenders look for a DSCR of at least 1.1–1.25, meaning the property produces more income than its monthly debt obligation.

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🔁 Bridge Loans (Collateral-Based)

Ideal for: Investors who need short-term liquidity leveraging existing assets

Bridge loans are temporary loans (up to 12 months) that help you tap into the value of a property you already own. They’re often used to fund a down payment on a new property, cover a time gap between transactions, or refinance an existing loan coming due. These loans are asset-based, meaning approval is mainly focused on the equity in the property — not your personal finances. You get flexibility and speed to act while waiting for long-term financing or a sale to close.

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💼 Cash-Out & Refinance Loans

Ideal for: Investors who’ve improved a property and want to access equity

Cash-out and refinance loans let you pull equity from a property you’ve already renovated and stabilized, freeing up capital for your next investment. Both the property being refinanced and any new property acquired with the funds must be non-owner-occupied. These loans are a great fit for investors looking to scale efficiently by leveraging equity tied up in existing projects.

Loan terms typically extend up to 24 months, with lending amounts capped at:

• Up to 65% of ARV when reinvesting into another purchase or rehab
• Up to 50% if using the funds for other purposes, such as closing costs or general expenses