What is a fix and flip loan?
A fix and flip loan is a short-term, asset-based loan that pays for buying a distressed property and renovating it for resale. Approval is based mainly on the deal: the purchase price, the rehab budget and the after-repair value (ARV), along with your experience and credit.
Unlike a bank mortgage, there is no income verification or debt-to-income ratio, and the loan is designed to be paid off when you sell or refinance, usually within 6–18 months.
How much can you borrow?
Leverage is measured three ways, and the lowest of the three sets your loan:
- Loan-to-cost: up to 95% of the purchase price plus 100% of the rehab, priced instantly online (100% purchase available through partner programs on qualifying deals)
- Loan-to-ARV: the total loan is capped at 75% of the after-repair value
- Your experience tier: investors with more completed projects get higher leverage and lower rates
Our instant quote runs all three for you and shows three pricing options, from lowest rate to lowest upfront cost.
Fix and flip vs. bridge + rehab
If you'd rather fund the renovation yourself and just need the purchase financed, our bridge + rehab option can lower your cost. For heavier projects such as additions, conversions or adding units, tell us about it up front so the budget is underwritten as a complex rehab.
Fix & Flip Loans: terms at a glance
| Loan amounts | $50,000 to $3MM+ (larger through partners) |
|---|---|
| Purchase | Up to 95% with instant pricing; 100% through partner programs |
| Rehab | Up to 100% of budget, paid in draws |
| Max loan | 75% of ARV |
| Term | 12, 18 or 24 months |
| Payments | Interest-only on disbursed funds |
| Prepayment | No prepayment penalty on most programs |
Terms shown are representative and subject to underwriting, appraisal and state availability. All loans are business-purpose loans on non-owner-occupied property. This is not a commitment to lend.