What is a fix and flip loan?
A fix and flip loan is short-term, interest-only financing that covers part of the purchase price and the renovation budget of an investment property. Lenders size it on three numbers: loan to cost (LTC), loan to as-is value, and loan to after-repair value (LTARV). Most borrowers repay it by selling the property or refinancing into a long-term rental loan.
Estimate only. Final leverage depends on credit, appraisal, budget review and final approval. This is not a term sheet or a commitment to lend.
Fix-and-flip loan terms and requirements
Leverage
- Up to 90% of purchase price
- Up to 100% of standard rehab
- Up to 85% of extensive rehab
- Up to 75% of after-repair value
- Maximums vary by experience tier
Loan terms
- $100,000 to $15 million
- Up to 18 months
- Fixed rate, interest only on the balance
- Interest reserve available
Eligible properties
- 1–4 unit residences
- Condos and townhomes
- Raw and entitled land
- Business-purpose, non-owner-occupied
Borrower
- LLC, LP, trust or corporation
- Credit from 660, varies by tier
- Personal guarantee preferred; limited guarantee considered
- First-time investors considered
To apply
- Completed application
- Purchase agreement and all addenda
- Title and insurance contacts
- Builder resume if different from the borrower
To underwrite
- Two most recent months of bank statements
- Entity documents
- Detailed, itemized renovation budget
- Full interior appraisal or lender-approved valuation
How LTC, LTV and LTARV size a fix-and-flip loan
Lenders check three limits. Loan to cost compares the loan with the purchase price plus the renovation budget. Loan to as-is value compares it with what the property is worth today. Loan to after-repair value (LTARV) compares it with the appraised value once the work is done.
The lowest result sets the maximum loan. On this program that means up to 90% of the purchase price, up to 100% of a standard rehab budget and no more than 75% of after-repair value, with maximums that vary by experience tier.
Already mid-project? Refinance the rehab
If you already own the property and the renovation has outgrown its original financing, a property and rehab loan can pay off the existing loan and fund the work that remains.
Property and rehab loans →From first review to closing
Tell us about it
A short intake or a call. Progress saves as you go.
CPA-led underwriting
We analyze the numbers, structure and documents before anything moves forward.
Term sheet or placement
On select investor programs, qualifying deals receive a term sheet from us. Other financing is structured and presented to sources in our network.
Approval and closing
Final approval, appraisal, title and insurance through funding. Steps vary by program.
Fix-and-flip loan FAQs
Can first-time flippers qualify?+
Yes. Programs extend to borrowers with no completed projects in the last 36 months, at lower leverage. Each completed project moves you toward higher leverage and lower credit minimums.
What is LTARV?+
Loan to after-repair value: the total loan divided by the appraised value of the property once renovations are complete. Fix and flip loans go up to 75% LTARV.
Can I refinance a property I already own?+
Yes. Purchase, refinance and cash-out refinance are all eligible. If you have owned the property less than 24 months, cost basis includes your purchase price and completed work. After 24 months, lenders use as-is value.
What is an interest reserve?+
Part of the loan set aside to cover monthly interest during the project, so payments are not coming out of pocket while you renovate.