Flyhomes How It Works
1) Clients are pre-underwritten, meaning Flyhomes does a deep dive into their finances before they start looking for a home to ensure they are eligible for a loan and to let them know what their budget is.
2) Initially clients get set up with a short-term loan to make a competitive cash offer. This loan is payable in as few as 10 days. One source states that this short-term loan carries an annual interest rate of about 6% (source).
3) Once the client’s short-term loan closes, they can move into their new home.
4) After the client has moved out of their old home, Flyhomes gets the old vacant home show-worthy to help the client maximize their profits from the sale. Once sold, Flyhomes' in-house mortgage team works to refinance the client’s short-term loan into a long-term loan and applies the proceeds from the home sale to the down payment. Alternatively, Flyhomes will spend up to 3 months helping clients find a lender of their choice. During this period, clients will pay costs associated with holding a new home, which is a fixed daily rate that typically ranges from $100-$200 per day.
Their website used to disclose the Loan Origination Fee which ranged from 0.75% - to 3.00% of the loan amount. This article still states the fee but may be outdated percentages now.