They are generally shorter terms loans such as 12-month loan term with Interest Only (I/O) payments.

@Keith NelsonAssuming the property in is NC...My pricing this morning is:Conventional at 75LTV on SFR at 7.250% at par, no points and no underwriting fees.Conventional at 75LTV on 2-4 Unit at 7.760% at par, no points and no underwriting fees.DSCR at 80LTV on SFR at 7.550% at par, no points, $1295 underwriting fee, 3yr PPP.DSCR at 80LTV on 2-4 Units at 7.675% at par, no points, $1295 underwriting fee, 3yr PPP.You can reduce the DSCR rate by 0.63% if you opted to go to a 5yr PPP.All of my lenders are pricing 10yr ARMs or 10yr I/O higher than 30yr Fixed.Cheers!

Maybe we can try to structure it as I/O for 5 yrs- will free up a bit of cashflow and you can refi and cash out once the rates cool down in the next 5 year cycle or so.

They also peddle their IOS software that they charge for each month.

That means whatever investment you make needs to bring in an additional $500/mo in value to just break even.I would use 203k loan as a last resort-- some people have no issues, a lot of others say the application process and rehab draw process is very tedious.I used a Construction Loan from City Bank-- a local group that gave me 12-months I/O without any points up front as long as I refinanced with them.

But I wouldn't discount them for fix-n-flip perhaps.Unfortunately the BP app on iOS won't let me scroll the text field.

General rule of thumb is 50% of purchase price and the bank will lend 100% of the construction costs, I/O, Prime + 1-2% for 12-18 months as long as the ARV is 75% or less. 

@Alba CheungLots of different thoughts on I/O loans. 

It also has an IOS app which is very functional.

Variable rate 5 year I/O draw period followed by 25 year amortization.