Purchase Price
What are you paying for the property today?
Real Estate Investors
Buy the Property. Fund the Rehab. Know the Exit.
Fix & Flip financing can combine acquisition and renovation capital into one short-term investment loan, with leverage based on the deal, the scope of work, the projected after-repair value, and the investor behind it.
- Purchase + Rehab Financing*
- Up to 100% Rehab Financing*
- Fast Business-Purpose Closings*
- Resale or Refinance Exit*
Quick Answer
A Fix & Flip loan is short-term financing for an investment property that needs renovation or repositioning. The lender typically evaluates the purchase price, renovation budget, after-repair value, borrower experience, and exit strategy rather than underwriting it like a traditional owner-occupied mortgage. Rehab funds are commonly held back and released through a draw process as work is completed.
*Subject to lender, borrower, property, leverage, experience, and program requirements.
The Numbers That Matter
Fix & Flip Lending Is About Leverage.
Rehab Budget
How much capital is required to complete the planned scope of work?
After-Repair Value
What is the property reasonably expected to be worth when the renovation is complete?
Borrower Contribution
How much capital must the investor bring based on the lender's leverage limits?
Different lenders measure leverage using different combinations of acquisition cost, total project cost, and after-repair value.
Two Ratios Drive Most Fix & Flip Conversations.
LTC
Loan-to-Cost
How much of the total project cost the lender is willing to finance.
Loan AmountPurchase + Eligible RehabLTC
ARV
After-Repair Value
How large the loan is relative to the property's projected completed value.
Loan AmountAfter-Repair ValueARV Leverage
A deal can fit the lender's LTC limit and still be constrained by ARV — or vice versa.
Here's What a Project Might Look Like.
Purchase Price
$500,000
Rehab Budget
$100,000
Total Project Cost
$600,000
Projected ARV
$800,000
If a program allows strong leverage against cost and ARV, part or all of the rehab budget may potentially be financed. Available leverage depends on experience, credit, liquidity, property, scope, market, and lender.
Available program examples may include:
- Up to 90% LTC
- Up to 75% ARV
- Up to 100% rehab financing
How the Renovation Money Works
The Rehab Money Usually Isn't Handed to You on Day One.
Rehab funds are commonly held in a controlled account and released through a draw process as renovation milestones are completed.
1
Work is completed
2
Draw request is submitted
3
Inspection / verification occurs
4
Approved rehab funds are released
Some structures require the investor to advance certain costs before reimbursement, while others may allow different draw mechanics depending on the lender.
Your Track Record Can Change the Terms.
Experienced investors may receive stronger leverage, pricing, or flexibility because the lender has evidence that they can:
- Estimate rehab costs
- Manage contractors
- Stay on schedule
- Control carrying costs
- Complete and exit projects
First-time flippers may still have options, but the structure may be more conservative.
The Exit Should Exist Before the Entry
Are You Selling It — or Keeping It?
Sell
Traditional Fix & Flip exit. Renovate → List → Sell → Repay short-term financing.
Keep
Potential BRRRR-style or long-term hold exit. Acquire → Renovate → Stabilize → Refinance into longer-term financing. Potential takeout financing may include DSCR, conventional investment financing, or other eligible long-term investor financing.
The flip loan gets you into the project. The takeout loan determines whether you can afford to keep it.
Time Is Part of the Budget.
A profitable project on paper can become thin if renovation takes longer than expected, contractor costs increase, taxes and insurance continue, utilities remain active, interest accrues longer, resale takes longer, or extension fees are triggered.
Every extra month has a cost.
What Makes a Stronger Fix & Flip Deal?
- Purchase price supported by the market
- Realistic rehab budget
- Clear scope of work
- Credible after-repair value
- Adequate borrower liquidity
- Appropriate experience for the project
- Realistic timeline
- Defined exit strategy
The lender isn't just underwriting the property. They're underwriting whether the plan can be executed.
First Flip? Not Automatically a Dealbreaker.
Select Fix & Flip programs may be available to first-time investors, although leverage, pricing, liquidity, or contractor requirements may differ from those available to experienced operators.
Experience helps. A well-structured deal still matters.
Start With the Project
Let's Run the Deal Before You Buy It.
Send the purchase price, rehab budget, projected ARV, and exit strategy. We'll determine what leverage may be available and whether the financing fits the project.
Good financing doesn't fix a bad deal. It helps a good deal get executed.
Frequently Asked Questions
A Fix & Flip loan is short-term financing for an investment property that needs renovation or repositioning. The lender typically evaluates the purchase price, renovation budget, after-repair value, borrower experience, and exit strategy rather than underwriting it like a traditional owner-occupied mortgage.
Yes. Many Fix & Flip programs structure rehab funds into the loan, then release them through a draw process as work is completed. The exact structure depends on the lender and the project.
Some programs may offer up to 100% rehab financing, subject to leverage limits, borrower experience, property, scope, and lender requirements. Not every project or borrower qualifies for full rehab financing.
LTC stands for Loan-to-Cost. It measures how much of the total project cost — typically purchase price plus eligible rehab costs — the lender is willing to finance. A deal can fit the LTC limit and still be constrained by ARV, or vice versa.
ARV stands for After-Repair Value. It is the property's projected value once the planned renovation is complete. Lenders may use ARV to cap leverage even when the total project cost supports a larger loan.
Rehab funds are commonly held in a controlled account and released through draws after work is completed and verified. Some structures require the investor to advance certain costs before reimbursement, while others use different draw mechanics.
Select programs may be available to first-time investors, although leverage, pricing, liquidity, or contractor requirements may be more conservative than for experienced operators. A well-structured deal still matters.
The short-term flip loan gets you into the project; a longer-term takeout loan such as DSCR or conventional investment financing determines whether you can afford to keep it. The exit should be planned before closing.
Underwriting is primarily project-driven, but lenders may still review borrower credit, liquidity, reserves, and experience. Documentation requirements vary by program and lender.