Fix & Flip Loans
Short-term financing solutions tailored for real estate investors looking to purchase, renovate, and sell properties quickly for a profit.
Short-term financing solutions tailored for real estate investors looking to purchase, renovate, and sell properties quickly for a profit.
Fast Funding for Investors
Fix and flip loans provide the capital needed to acquire a distressed property and cover the renovation costs. These are typically short-term loans (usually 6 to 18 months) designed to be paid off once the property is sold or refinanced.
Program Features
- Fast approval and funding times to compete in hot markets.
- Funds available for both the purchase price and rehab costs.
- Interest-only payments during the renovation period.
- Based largely on the property's After Repair Value (ARV).
- Available for single-family, multi-family, and mixed-use properties.
Who is Eligible?
- Real estate investors (individuals or LLCs/Corporations).
- Borrowers with a minimum credit score (often 620-660+).
- While prior flipping experience is preferred and gets you better rates, first-time flippers can also qualify.
- Investors with sufficient liquid reserves to cover unexpected costs and interest payments during the project.
What is the Process?
- Project Evaluation: You provide the purchase contract, a detailed scope of work, and the contractor's budget.
- ARV Appraisal: An appraiser determines the current "as-is" value and the After-Repair Value (ARV).
- Fast Underwriting: Because these are asset-based loans, underwriting focuses heavily on the property's potential profit margin rather than your personal income.
- Closing: You close quickly (often in 2-3 weeks). The purchase funds are disbursed, and rehab funds are held in escrow.
- Renovation & Sale: You complete the rehab, drawing funds as work is verified. Once finished, you sell the property and pay off the loan.
Is Mortgage Insurance Required?
No. Fix and flip loans are commercial, hard-money, or private-money loans. They do not require traditional Private Mortgage Insurance (PMI). Instead, lenders mitigate risk by lending a lower percentage of the ARV (usually capping the loan at 70-75% of the ARV).