Acquisition Loans in Maryland, DC & Virginia
Sometimes the best move is the simplest one: buy the property now, handle improvements with your own capital, and choose permanent financing on your timeline. Property Flip Loan structures acquisition-only loans for real estate investors who want maximum flexibility without rehab draws.
Bottom line: We finance the purchase only—no construction draws—so you can close fast, control your rehab spend, and move quickly to your exit (sale or refinance).
Business-purpose loans only. Non-owner-occupied properties.
Why Investors Choose Property Flip Loan
Speed to close: Win time-sensitive deals (pre-auction, off-market, tight contracts).
Simple structure: Interest-only, short-term loan with no prepayment penalty.
Keep control of the rehab: You fund renovations directly—no draw inspections or delays.
Flexible exits: Refinance to DSCR, bank portfolio, or conventional once stabilized.
Local expertise: Focused on Maryland, Washington, DC, and Virginia—we know the submarkets and comps.
Key Criteria (Snapshot)
Term: Up to 12 months (extensions available)
Leverage: LTV must not exceed 70% (typically the lesser of 70% of as-is value or purchase price)
Prepayment: No prepayment penalties
Credit: No minimum score (we underwrite the deal, experience, and exit)
Use of Funds: Acquisition only (no rehab draws)
Structure: Usually 1st lien, interest-only monthly payments
(We don’t publish rates online; terms depend on the project, sponsor, and market.)
What Is an Acquisition-Only Loan?
An acquisition loan funds the purchase of a property—period. Investors use this when they:
Need to close quickly and will handle renovations out-of-pocket.
Want to avoid draw processes during a light or fast rehab.
Plan to stabilize and refinance into long-term debt once rents and DSCR support it.
This is a common structure across real-estate financing—“acquisition” specifically means capital to obtain the asset (not to improve it). Capital Impact Partners
Where Acquisition-Only Shines (Use Cases)
Beat the clock (auctions & deadlines): Many auctions require proof of funds and have compressed timelines; an acquisition loan helps you close now and refi later.
1031 exchange: When you must identify within 45 days and close within 180 days, fast purchase funding can preserve the exchange while you line up permanent debt.
Light-touch or rent-ready deals: Minimal work needed? Skip the complexity of a construction holdback and move straight to stabilization.
Portfolio strategy: Use quick purchase capital to sequence acquisitions, then refinance each asset as DSCR and operating history come together.
Value-add with your own cash: If you already budgeted rehab funds (or have cheaper capital), keep control of scope, timing, and vendor payments.
Seller won’t wait for a bank: Close on the seller’s timeline; refinance with the bank’s timeline.
Underwriting Focus (What We Look For)
As-Is Value & LTV: We verify as-is value and size up to 70% LTV to protect downside and ensure refinanceability. LTV = loan ÷ appraised value.
Exit plan: Clear take-out strategy (DSCR/conventional/bank), with timing that aligns to your stabilization plan.
Refi metrics: Expect take-out lenders to look for DSCR ≈ 1.20x+ (NOI ÷ total debt service). We like deals trending to or above that threshold.
Borrower liquidity: Since you’re funding rehab, we’ll confirm available cash/reserves.
Scope & timeline: Even without draws, a realistic scope prevents surprises.
Insurance & title: Proper coverage and clean title—standard risk controls.
How Our Acquisition-Only Loans Work
Send a Deal Snapshot: Address, purchase price, as-is value, exit plan, timeline.
Size the Loan: Up to 70% LTV (as-is) or 70% of purchase—whichever is lower.
Close Fast: Title, insurance, entity docs. Interest-only, no prepay penalty.
You Execute Rehab: You pay vendors directly—no draws from us.
Refi or Sell: Pay off anytime once your take-out loan or sale is ready.
Example: Quick Close, Light Rehab
Purchase Price: $300,000
As-Is Appraised Value: $315,000
Max Loan @ 70% LTV (as-is): $220,500
Borrower Cash to Close: Remainder + closing costs
Borrower Funds Rehab: $25,000 light updates from their own capital
Exit: Lease-up to $3,000/mo and DSCR refi at 70–75% LTV once stabilized (target DSCR ≥ ~1.20x).
Result: You win the deal quickly, execute a fast mini-reno without draw friction, then refinance into a 30-year DSCR loan and pay us off early (no penalty).
Eligible Property Types
Residential investment: SFR, townhomes/rowhomes, 2–4 unit small multifamily
Select small commercial/mixed-use: Case-by-case when exit is clear
Not eligible: Owner-occupied/consumer-purpose properties
Documents We’ll Request
Purchase contract (or ownership docs if already owned)
As-is valuation (BPO or appraisal), recent comps
Proof of funds for your rehab + reserves
Basic scope & timeline (even for light renos)
Entity docs & ID; insurance (lender loss payee)
FAQs
Do you finance rehab on this program?
No—acquisition only. If you want rehab funding and draws, check our Fix & Flip or Rehab-to-Rental (BRRRR) programs.
Why choose acquisition-only if I’m renovating?
Speed and control. You skip draw logistics, pay subs directly, and often close faster—useful for auctions, 1031s, or light-touch projects.
How fast can you close?
With a complete file and clear title, often in days—that’s the core advantage of this structure.
What DSCR do take-out lenders look for?
Many target ≈1.20x+ (NOI ÷ debt service), but requirements vary. We’ll help you structure to meet your likely take-out.
Any prepayment penalty?
No—pay off anytime.
Ready to Lock Up the Deal?
Send a 6-Line Acquisition Snapshot for quick terms:
Address:
Purchase price & as-is value:
Use of funds: Acquisition only
Rehab scope & budget (you-funded):
Exit & timeline: Refi or sale + target date
Sponsor notes: Experience & liquidity