Fix and Flip Loans for Real Estate Investors
A fix and flip loan is short-term financing that covers the purchase of an investment property and, in most cases, part or all of the renovation budget.
It fits investors who plan to renovate and sell, or renovate and refinance into a rental loan, typically within 6 to 18 months.
Fix and Flip Loans quick facts
These are the typical terms for fix and flip loans. Your actual terms depend on underwriting.
| Typical amount | $75,000 to $3,000,000 |
|---|---|
| Typical term | 6 to 18 months, interest-only |
| Typical funding speed | Typically 7 to 21 days after a complete file |
| Typical minimum requirements | Up to 85% to 90% of purchase, up to 100% of rehab, capped at 70% to 75% of ARV |
| Cost structure | Interest rate plus origination points, draw and inspection fees |
Fix and Flip Loans: good fit or not?
This option works well for some situations and is a poor match for others.
Good fit
- Renovation projects with a clear scope and budget
- Investors with flip or rehab experience (first-timers considered)
- Buy, renovate, rent, and refinance strategies
- Purchases that need a fast close
Not a good fit
- Owner-occupied homes
- Long-term rentals with no renovation (see DSCR loans)
- Projects without enough margin between total cost and ARV
Documents usually needed
Having these ready typically speeds up review. A funder may request additional items.
- Purchase contract
- Scope of work and renovation budget
- Track record of past projects, if any
- Two months of bank statements for down payment and reserves
- Entity documents
- Contractor information (if applicable)
Fix and Flip Loans: how it works
The process typically follows 4 steps from first conversation to funding.
Submit the deal
Send the contract, budget, and estimated after-repair value.
Receive terms
We present leverage, rate, and points from available funders.
Valuation and close
The funder confirms value and closes the purchase.
Renovate and draw
Rehab funds are released in draws after inspections.
Fix and Flip Loans vs. DSCR Loan
The main difference comes down to structure, cost, and timing. Here is how they typically compare.
| Feature | Fix and Flip Loans | DSCR Loan |
|---|---|---|
| Purpose | Renovate and sell or refinance | Long-term rental hold |
| Typical term | 6 to 18 months | 30 years |
| Payments | Interest-only | Usually amortizing |
| Includes rehab funds | Usually | No |
Typical characteristics. Terms vary by funder and file.
Fix and Flip Loans FAQs
What is ARV?
After-repair value is the estimated market value of the property once renovations are complete. Most fix and flip funders cap total loan amount at a percentage of ARV.
How do rehab draws work?
You typically pay for work first, then request a draw. The funder inspects completed work and reimburses you, minus any draw fee.
Can first-time investors get a fix and flip loan?
Yes, with some funders. First-time investors may see lower leverage or higher pricing than experienced investors.
How fast can a fix and flip loan close?
Many fix and flip loans close in about 7 to 21 days after a complete file, depending on valuation and title.
Can I refinance a flip into a rental loan?
Yes. Many investors refinance into a DSCR loan once renovations are complete and the property is leased.