Fix and flip loans

A fix and flip loan is short-term financing for buying a property, renovating it and selling it. Terms typically run 12 to 18 months. That gives you time to finish the work and sell or refinance.

One loan can cover two things: the purchase and the construction. Our lending partners typically fund the rehab in stages as the work gets done. With fix and flip experience, programs can finance up to 100% of the rehab cost.

These loans are underwritten mainly on the deal itself. Lenders look at the purchase price, the renovation budget, the after-repair value and your track record. Income documents are typically not required.

This program fits investors and contractors who buy, renovate and resell residential property. It works well if you manage your own projects.

• Experienced flippers. Two or more completed projects unlock the highest leverage and best terms.
• First-time investors. You can still qualify, typically at a lower leverage of around 70% loan-to-value.
• Self-employed borrowers. Since income isn’t verified, complex tax returns aren’t a barrier.

The loan must close in the name of an LLC, a corporation or a sole proprietorship.

Loan-to-cost (LTC) is the loan as a share of your total project cost, purchase plus rehab. Loan-to-value (LTV) is the loan as a share of the property’s value.

Rates are higher than bank financing because the loan is short-term and the property is mid-renovation. You’re paying for speed and flexibility.

Our lending partners finance non-owner-occupied residential investment property:

• Single-family homes
• 2–4 unit residential buildings
• Warrantable condos
• Townhomes

No other property types are eligible under this program. For commercial or larger multifamily projects, look at our debt programs.

The program is available nationwide except in Minnesota, North Dakota, Oregon, South Dakota, Vermont and Utah. If you’re in Georgia, hard money loans are another option. Hard money is offered in Georgia only.

The document list is short. To issue an approval, our lending partners typically ask for:

• A copy of the purchase agreement
• Credit authorization
• A copy of your Social Security card and photo ID
• Your last three months of bank statements, to show the down payment and any cash injection
• Renovation plans and a full project cost breakdown
• An appraisal, ordered during underwriting

Plan for these costs when you run your numbers:

• Points: typically 2% to 4% of the loan amount, collected at closing, depending on the deal
• Application and underwriting fees: these vary by lender
• Appraisal: usually paid by the borrower
• Down payment: depends on your experience; first-time investors put more in

The renovation budget drives the whole loan. Lenders use it, along with the appraisal, to size the loan and set the draw schedule. A draw schedule releases rehab money in stages as work is completed and inspected.

A few habits make underwriting smoother:

• Break costs out line by line, not as one lump sum
• Include a contingency for surprises behind the walls
• Match your timeline to the 12–18 month term, with room for the sale
• Keep receipts and photos for each completed stage

To learn how draws work in practice, read our guide to construction loan draw schedules.

Every fix and flip loan needs a clear exit. Most investors sell the finished property. Others keep it as a rental and refinance into a long-term loan.

If you plan to hold, a DSCR loan can replace the short-term loan once the property is rented. It qualifies on the rent rather than your income.

Building from the ground up instead of renovating? See our no income verification construction loans.