Fix/Flip Loan Programs
Short-Term Financing for Buying, Renovating, and Reselling Properties
A fix/flip loan is a short-term financing option designed for real estate investors who purchase properties, renovate them, and sell for profit. These loans focus on the after-repair value (ARV) of the property rather than traditional long-term income qualifications.
This type of loan is ideal for investors who want fast access to capital to move quickly on opportunities and complete renovation projects within a set timeframe.
Designed for Speed, Flexibility, and Investment Growth
Fix/flip loans prioritize the value of the property and the project potential.
- Short-term loan structure (typically 6 to 18 months)
- Funding based on purchase price and renovation costs
- Quick approval and funding timelines
- Ideal for experienced and new investors
- Focus on property value after repairs
Fix/Flip Loan Overview
| Feature | Details |
|---|---|
| Loan Type | Short-term investment loan |
| Purpose | Purchase and renovate properties |
| Term Length | Typically 6 to 18 months |
| Funding Basis | Purchase price + renovation budget |
| Exit Strategy | Sale or refinance after improvements |
How Fix/Flip Financing Works
Fix/flip loans are structured to support the full lifecycle of a renovation project.
- Loan covers property acquisition
- Funds may include renovation budget
- Draws released as work is completed
- Property is sold or refinanced after completion
Typical Funding Breakdown
| Component | Description |
|---|---|
| Purchase Price | Initial property acquisition cost |
| Rehab Budget | Estimated renovation expenses |
| ARV (After Repair Value) | Estimated market value after improvements |
| Loan Amount | Based on ARV and lender guidelines |
Who Should Use Fix/Flip Loans
This loan program is best suited for:
- Real estate investors and house flippers
- Contractors managing renovation projects
- Investors looking to scale quickly
- Borrowers with short-term investment strategies
- Individuals experienced in property improvements
Qualification Snapshot
| Requirement | Typical Standard |
|---|---|
| Credit Score | Typically 600+ |
| Down Payment | Often 10% to 25% or more |
| Experience | Preferred but not always required |
| Income Verification | Flexible or limited |
| Reserves | May be required |
Key Benefits of Fix/Flip Financing
- Fast access to capital for investment opportunities
- Financing based on property value potential
- Flexible underwriting for investors
- Ability to fund both purchase and renovation
- Supports multiple projects over time
Important Considerations
- Short repayment terms require clear exit strategy
- Interest rates are typically higher than long-term loans
- Renovation budgets must be well planned
- Timelines are critical for successful repayment
How the Fix/Flip Loan Process Works
| Step | What Happens |
| Pre-Qualification | Review investor profile and project details |
| Property Evaluation | Assess property and ARV |
| Application | Submit loan request |
| Underwriting | Evaluate deal structure and exit strategy |
| Approval | Loan decision issued |
| Funding & Draws | Funds released in stages during renovation |
| Exit | Sell or refinance the property |
Get Started with a Fix/Flip Loan Today
Take advantage of financing based on property potential and accelerate your investment strategy.