Residential Transition Loan (RTL / Fix & Flip Bridge)
Bottom Line Up Front (BLUF): Residential Transition Loans (RTLs) finance up to 85%–90% of purchase price and 100% of the renovation holdback (capped at 70%–75% of After Repair Value), allowing investors to complete value-add rehabs before selling or refinancing into a 30-year DSCR loan.
Underwriting Formula / Rule
Max RTL Loan = Min(85%–90% LTC [Purchase + Rehab], 70%–75% Completed ARV).
Wholesale Shelf Benchmark
10–14 business day closings with zero prepayment penalty.
Frequently Asked Underwriting Questions
How are rehab funds released on an RTL loan?
Rehab holdbacks are disbursed in reimbursements (draws) as work milestones are verified via desktop or field inspection.
Arranged by Loan Daddy LLC (NMLS #2827624 · (480) 485-1229 · quotes@loandaddy.ai). Business-purpose investment properties only.