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 broker 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 or acquire long-term rental properties

DSCR (Debt Service Coverage Ratio) loans are made 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 employment or tax returns.

They work especially well for BRRRR investors and landlords who want 30-year financing with minimal paperwork. If the rent covers the mortgage (typically DSCR ≥ 1.0), you’re in good shape.

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🚧 New Construction Loans

Ideal for: Investors and builders starting from the ground up

These loans are designed for constructing new residential or small commercial properties. You can use them to finance both the land and the cost to build. They’re typically interest-only during the build phase and are structured to release funds in stages as you complete portions of the project.

You don’t need to be a general contractor yourself, but you should be working with licensed professionals and have a clear plan and timeline. This is a good fit for builders and experienced investors — or new investors working with a reliable team.

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🔁 Bridge Loans (Collateral-Based)

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

Bridge loans are temporary loans 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