Fix and Flip Loans



What is a fix and flip loan?

The term “fix and flip loans” or “fix n flip loans” refers to financing given to a buyer renovating a distressed residence with the purpose of selling it. House flipping has traditionally been done by professional “flippers” but, in recent years, occasional real estate investors have entered the market. These investors have seen television shows focused on flipping houses but aren’t typically versed in how to get money to flip a house. Often, the distressed house is sold at auction for cash or the seller offers a better deal for an all-cash purchase. In this situation, the borrower needs the money for renovation, and will pull it from the 100% equity in the home, in the form of a cash-out refinance.

With real estate investment, rehab typically needs to start right after close, so lenders that are able to offer fix and flip refinance loans the day after closing are the most attractive to flippers. These tend to be private lenders that have hard money fix and flip loans with short repayment periods, which perfectly fit most flippers’ project timeframes. Hard money lenders are also more likely to offer fix and flip loans with no money down, no credit check, or to borrowers with bad credit. Some of these lenders also offer fix and flip loans that cover up to 100% of the rehab costs.

Perhaps the real estate investor wants to upgrade a rental and sell it. They can apply for a fix and flip construction loan to pay for these renovations.

In certain circumstances, a borrower may be best served by a single loan that covers both the purchase and renovation of a property, and there are fix and flip lenders that will fund such a loan. Typically, hard money or private money lenders will fund a loan that covers both purchase and renovation. In this circumstance, the LTV calculation involves the projected value of a residence after renovation, known as the ARV, or after-repaired-value. Some lenders will measure the loan amount as LTC, or loan-to-cost percentage.

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What are some fix and flip loan terms?

  • $100,000 to $350,000 loans with 9% interest rates, 80% LTV and 75% ARV for a seven-month term
  • Minimum property value $75,000, 6 to 12-month term up to 85% LTV with quick draws and interest-only payments
  • Up to 80% of the total project cost, minimum loan size $100,000
  • No tax returns for loans under $500,000, 85% LTV and 100% of cost, 600 minimum FICO
  • 90% LTV, 100% rehab funds, maximum ARV 75%
  • No FICO, no financials, no prepayment penalty and interest-only payments
  • No credit, bad credit OK, 400+ FICO and bankruptcy allowed
  • 65% LTV cash-out refinance

What about fix and flip for a commercial property or small apartment building?

There are lenders that will consider fix and flip loans for commercial and multifamily properties. Use to find commercial lenders.


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